At the Turner-owned Regency Pointe Apartments, a cluster of two-story red brick apartments 10 miles from Washington D.C., the typical tenant would earn $54,666 a year, according to U.S. Census data. Rent for a three-bedroom starts at $1,456 a month, according to the complex's website.
The fund is aiming for 10 to 12 percent returns net of all fees over the next few years by keeping tenant turnover and insurance costs low. Turner's firm does not disclose fees, but generally speaking, industry sources said similar, private equity-style funds typically charge annual management fees of 1.5 to 2 percent of assets, plus 20 percent of profits.
A benchmark generated by Global Impact Investing Network shows impact funds generated 5.58 percent returns over 15 years ending last June. The benchmark underperformed stock and bond market indexes across all timeframes it measures.
But Paul says that earning a financial return is essential to the fund's success.
"That's the fuel we need to bring in investors and reach even more communities and families," Paul said. "When you combine a positive financial return with positive social impact, you can make a huge difference for people.
This article was provided by Reuters.