Calvert Foundation Announces $8 Million Investment in MyStrongHome

PR Newswire

BETHESDA, Md., May 30, 2017 /PRNewswire/ -- Calvert Foundation today announced the closing of an $8 million financing round for MyStrongHome, a first-of-its-kind company that combines specialized climate-resilient construction, insurance and financing to mitigate risk and increase safety and security for families in vulnerable coastal communities. The investment will allow MyStrongHome to serve its first 1,000 homeowners and prove their model so they can address the market of more than 1.6 million homes across six coastal states.

The transaction incorporates innovative, tiered financing that relies on senior debt, convertible debt and a guaranty. The senior debt was structured and arranged by Calvert Foundation as a part of its new Capital Aggregation business and includes a lead participation from MetLife as well as Pi Investments and The Libra Foundation. The John D. and Catherine T. MacArthur Foundation provided a critical guaranty for the senior debt to de-risk this promising new enterprise and the formation of its market. The guaranty is structured to decline as the business builds a track record and shows how catalytic impact investments can pave the way for large-scale, private market solutions. An additional $2 million in convertible debt was closed in tandem and was structured and arranged by Prudential Financial and includes foundations, including the Greater New Orleans Foundation, as well as individuals.

MyStrongHome traces its origins to the search for market-based mechanisms to build resilience in the aftermath of Superstorm Sandy, with early research and development supported by Prudential, Rockefeller Foundation, and Nathan Cummings Foundation. MyStrongHome offers homeowners the opportunity to secure financing to safeguard their homes from extreme weather conditions by capitalizing on the resulting savings in homeowners' insurance premiums. The business, a for-profit benefit corporation, will launch immediately in coastal communities of Louisiana, Alabama and South Carolina, including New Orleans, Baton Rouge, Mobile and Charleston.

"MyStrongHome is a unique impact investment opportunity that focuses on climate adaptation and resilience, and is a rare example of business-model innovation in insurance that we are pleased to help introduce into the marketplace," said Jennifer Pryce, President and Chief Executive Officer of Calvert Foundation. "Today's announcement reflects the determination of all of the parties involved to find the right combination of financing to ensure the launch of this promising business. It's a great example of how financing from financial institutions like Calvert Foundation, MetLife, and Prudential Financial can come together with critical philanthropic leaders like The MacArthur Foundation to support financially viable enterprises that benefit our communities."

About MyStrongHome
MyStrongHome is a benefit corporation with a mission to strengthen communities in coastal areas. MyStrongHome provides home upgrades that meet the standards of the FORTIFIED for Safer Living program of the Insurance Institute for Business and Home Safety, provides financing for those improvements based on future insurance savings, and is a licensed insurance agent. They are dedicated to developing innovative, proven and fully certified programs that improve community access to critical resources needed to withstand future storms.

About Calvert Foundation
Calvert Foundation is building a more efficient impact investment marketplace by providing flexible capital at scale to a diversified, global portfolio of mission-driven organizations. Through its flagship Community Investment Note®, which it offers through its website and brokerage accounts, and its Capital Aggregation business, Calvert Foundation enables individual and institutional investors to invest in a portfolio of more than 150 mission-driven organizations, enabling financing for thousands of nonprofits, social enterprises and communities worldwide. During Calvert Foundation's 22-year history, it has raised more than $1.4 billion from 18,000 investors and returned 100% of principal and interest. Investor dollars finance community development, education, environmental sustainability, financial inclusion, health, housing, sustainable agriculture, small businesses and renewable energy.