We receive lots of questions from our Co-op Members about self-directed IRAs ("SD-IRAs"). This prompted Alicia Robb, one of Kachuwa's Board Directors, to write this informative article about utilizing SD-IRAs for impact investing. Over 10% of our Members have invested in our co-op via an SD-IRA custodian that allows them to make private investments, and in her article, Alicia provides a comparison of the fees charged by the SD-IRA custodians that our Members most commonly use. If you'd like to learn more about SD-IRAs, in addition to reading Alicia's article, we also recommend that you check out The Next Egg, a wonderful resource dedicated to helping people move their retirement savings out of Wall Street and onto Main Street via SD-IRAs, solo 401(k)s, and employee-directed 401(k)s.
News
Our cooperative recently made the following investment commitments as a limited partner (“LP”):
1. $1.0M commitment to SJF Ventures Fund VI — SJF Ventures is a Certified B Corporation that invests in early-stage impact companies.
2. $1.0M commitment to EFM Fund IV — Ecotrust Forest Management (EFM) is a women-led Certified B Corporation that invests in sustainable timberland, primarily in the Pacific Northwest.
3. $750K commitment to Sarona Fund III — Sarona Asset Management is a Certified B Corporation and “fund of funds” manager that invests in impact funds and impact-oriented companies in emerging markets.
4. $250K commitment to COinvest Fund I — COinvest s a “fund of funds” focused on investing in impact funds while also seeking to generate economic benefit in Colorado. COinvest is currently being incubated within Gary Community Ventures, a nonprofit foundation, similar to another Kachuwa investee, The Dearfield Fund for Black Wealth.
The first three LP commitments are follow-on investments, as Kachuwa is an LP in earlier funds managed by SJF, EFM, and Sarona.
Kachuwa is also evaluating a potential follow-on investment in Lyme Timber Company Fund VI. Lyme Timber is an employee-owned firm that invests in sustainably managed timberland, primarily in the eastern United States.
Marcia Dawood and Blake Jones discuss Kachuwa Impact Fund and co-op models in a new 30-minute episode of Marcia's "The Angel Next Door" podcast. Their discussion includes a great overview of Kachuwa, its origin story, how its structured, and how it utilizes cooperative principles to take a unique approach to impact investing. Click here to listen to the 30-minute episode via Apple podcasts, or you can search for "The Angel Next Door" wherever you get your podcasts.
