Microsoft Corp. (Nasdaq: MSFT) and Truist Financial Corporation (NYSE: TFC), as anchor investors in the Mission-Driven Bank Fund, on Thursday announced the issuance of a request for proposal (RFP) to identify qualified candidates to manage the fund on behalf of investors. The RFP submission period will be open Dec. 2, 2021 through Feb. 4, 2022.
The Mission-Driven Bank Fund is a capital investment vehicle designed by the Federal Deposit Insurance Corporation (FDIC) to channel private capital and other resources to FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs), which collectively are mission-driven banks. These institutions play a crucial role in serving the needs of minority and rural neighborhoods through affordable financial products that support small-business development, community development, affordable housing, and other initiatives that foster growth and create opportunity and prosperity.
The fund will provide “patient capital” to mission-driven banks serving historically excluded communities across the country, prioritizing social impact objectives over the fund rate of return. In addition to investment capital, the fund will be focused on providing access to support resources such as technical training, assistance in developing lending and investment products, banking operations, and more.
As anchor investors, Microsoft and Truist are seeking fund manager candidates that represent a diverse and inclusive pool of investment management talent including minority- and women-owned fund management firms. The RFP period is intended to ensure that the selected fund manager is well suited to meet the diversity- and mission-driven intentions of the fund. To achieve this objective, a partnership of fund managers or more than one fund manager may be selected. Microsoft and Truist will not be involved in the investment decisions of the fund.