December 11, 2024
COinvest: A Pioneering Model for Place-Based Community Investing in Colorado
COinvest demonstrates how place-based investing can unlock both financial returns and lasting community impact, reimagining the future of philanthropy in our own backyards.
By Santhosh Ramdoss, President & CEO
In an era of uncertainty, where change feels constant, the concept of place has taken on renewed significance. Impact investing—directing capital towards generating both financial returns and social or environmental benefits—is fundamentally rooted in this idea. It’s about making meaningful investments in the communities we know best and where the outcomes truly matter. And while the impact investing movement has gained significant traction over the last two decades, it finds itself at a moment of reckoning.
Despite years of advocacy, a recent report by Capricorn Investment Group and The Bridgespan Group reveals that only a tiny fraction of foundation endowments actively support mission-aligned initiatives. Most philanthropic endowment dollars still pursue traditional goals of maximizing returns, disconnected from the missions and communities they were created to serve.
As we look to the future of private philanthropy, the question becomes: How can we leverage the entirety of philanthropic capital to fulfill mission goals, particularly those that impact the communities closest to us? Yet, there’s a significant challenge for place-based investing—balancing the promise of financial performance with the inherent risks of concentrating investments locally. This is a question we at Gary Community Ventures have grappled with, as we navigate our commitment to Colorado, placing a strong emphasis on local investments that directly support our mission.
Over the past decade, we’ve taken an innovative approach that balances financial returns with a deep impact on Colorado communities. By identifying national, values-driven managers who deliver competitive returns and can bring their impact to bear in Colorado, we’ve been able to influence significant change within our state.
One of the standout examples has been our collaboration with A&H Capital Partners, a national fund focused on buying owner-operated businesses and transitioning them into employee-owned enterprises. For many working-class employees, this transition opens doors to economic growth and personal wealth-building, fostering a future rooted in economic stability. Gary was among A&H’s early limited partners (LPs), helping to connect the fund with local resources and networks. While A&H’s portfolio spans nationwide, two of their investments are in the Denver metro area, empowering local workers by providing them with ownership stakes and economic opportunities they wouldn’t otherwise have. It’s a tangible example of how financial returns can dovetail with community empowerment, illustrating the transformative potential of place-based investing.
Success like these have fueled a larger vision—one that extends beyond our own organization. Inspired by this model’s potential for replication, Gary launched COinvest earlier this year. This fund-of-fund platform enables accredited investors (institutions, foundations, family offices, and high net-worth individuals) with a focus on Colorado to participate in a structure designed to deliver both market-competitive returns and meaningful local outcomes. Through COinvest, we’ve built a framework that allows investors to make a difference across critical sectors, from education and healthcare to housing, financial mobility, and climate resilience, all while leveraging Colorado’s unique market advantages.
Since its inception, COinvest has seen strong early success, securing its first close with commitments from notable partners such as Bonfils-Stanton Foundation, Gates Family Foundation, The Denver Foundation, and others. The early interest is indicative of a shared desire for a new chapter in mission-aligned investing, one that centers on using financial resources not just to serve returns but to enrich the communities we live in.
At its core, COinvest is about rekindling a connection to place. It’s about cultivating economic participation and using financial markets as a tool for good. We envision a model that not only generates robust returns but also revitalizes the communities we call home, shifting power and prosperity back into the hands of local residents. As we consider the broader role of impact investing, we see an opportunity for philanthropic and private investors alike to ask: How can our capital serve both financial and social outcomes within our own communities?
We believe that this is just the beginning in Colorado and beyond. COinvest represents a profound shift in how private capital can be deployed, fostering a sustainable, financially sound model for community-focused investment. In Colorado alone, there exists an estimated $15 billion in tax-exempt philanthropic assets alongside a wealth of private capital and public funds. Yet, only a small percentage of this wealth remains invested in the state. Instead, much of it flows outward, bypassing the communities it could most benefit. COinvest seeks to rewrite this narrative, channeling capital back into local communities to drive transformative economic and environmental benefits while underwriting market rate returns.
The future of impact investing lies in our backyards. It lies in our neighborhoods, our cities, our states—in the places where lives intersect, where communities take shape, and where capital has the potential to create lasting transformation. COinvest isn’t merely an investment vehicle; it’s a movement toward a deeper sense of place, toward reimagining community investing for the 21st century. We believe that when we invest in our communities, we invest in a legacy—one that endures, uplifts, and empowers, generation after generation.