While the impact investing field has taken off in recent years and has influenced mainstream banking priorities, worker cooperatives are not yet a viable option for a typical impact investor interested in ‘investing with purpose.’ In these two publications, we address the question: What would it take for an investor to be able to easily target part of their investment portfolio to worker-owned cooperatives, to ‘mainstream’ the practice of investing in worker cooperatives?
THE ORIGINAL COMMUNITY INVESTMENT
A guide to worker coop conversion investments
This paper aims to help investors understand worker cooperative investing, especially in the context of worker coop conversions. We first review the basics of worker cooperatives and worker coop conversions including how financial statements are different and how deals are structured. Then, we go into detail about investment options and considerations.
An investor who wants to make a steady return and support the worker cooperative model has a range of options to invest either directly or indirectly in worker-owned cooperatives. We hope this information is helpful to encourage investment in this highly beneficial—and highly underrepresented— business model.
View our recorded webinar
Impact Investing in Worker Cooperatives: How to get involved
Date: Tuesday, 4/26
Time: 1pm EST / 10am PST
Worker cooperatives are a highly underrepresented business model that have tremendous positive impacts for employees, businesses and communities.
This webinar is targeted for impact investors and others who want to better understand investment options for targeting impact capital to worker coops. We will provide background about worker cooperatives and the opportunity in worker coop conversions, review worker coop investment structures, and delve into investment options ranging from direct investing, loan and equity fund investing and investment crowdfunding.
Panelists
- Blake Jones, Co-founder, Namaste Solar
- Christina Jennings, Executive Director, Shared Capital
- Matt Glatting, Treasurer, Capital Impact Partners
- Annie McShiras, Investment Associate, Self-Help Federal Credit Union
- Alison Lingane, Co-founder, Project Equity
See accompanying publication: ADDRESSING THE RISK CAPITAL GAP FOR WORKER COOP CONVERSIONS, Strategies for the Field to Increase Patient, Risk Capital