Development and Investor Relations
Overview
Development and investor relations professionals build the partnerships and secure the resources that power CDFIs’ missions. Raising financial resources is a complex and constantly evolving puzzle, as many CDFIs must obtain funding to both support operations and finance the loan capital they deploy into their communities.
Many CDFIs—particularly loan funds—rely on funding and investments from a range of sources, including public sector grants and loans, and debt or equity from other financial institutions, foundations, corporations, faith-based entities, and individual donors. Development professionals not only cultivate these relationships but also help structure financing arrangements that align with investor needs and the organization’s lending goals.
Beyond capital raising, these practitioners often ensure compliance with funder and investor requirements, from reporting to impact updates. They may also collaborate with, or take on, marketing and communications functions, helping build the organization’s brand and reputation via storytelling that inspires funders and strengthens partnerships.
What Do Development Practitioners Do?
- Design and implement capitalization strategies. Develop and execute plans to raise both loan capital and operating funds, tailoring structures to fit funder and investor requirements.
- Cultivate relationships. Build connections with a range of funders and investors across the public, private, and philanthropic sectors.
- Structure financing agreements. Negotiate and manage terms with banks, foundations, and other investors to align capital sources with lending needs.
- Manage public sector awards. Apply for and oversee grants and programs administered by federal, state, and local agencies.
- Market research. Track capital markets and philanthropic trends. Identify new sources of capital and anticipate shifts that may affect capitalization strategy.
- Ensure compliance with funder and investor requirements. Write grant proposals and renewals, deliver impact reports, and track program or funding goals.
Key Skills and Sample Job Titles
Relationship Management
These professionals are often one of the key faces of a CDFI for funders and investors. They help convey the values, credibility, and impact of their organizations to partners. As part of their capital raising job, they are responsible for building relationships in their communities and beyond to attract new supporters to their work, and nurture long-standing partnerships.
Collaboration
Practitioners in these roles interface between the organization’s funders and the internal teams responsible for lending and programmatic work. They must be well-versed in the mission and strategy of the organization, and able to collaborate effectively across teams to ensure that the money coming in meets the full range of organizational needs.
Communication Skills
Development and capitalization practitioners inspire passion in the mission and help potential partners understand how their goals align with the work of CDFIs. They are often tasked with translating the complexities of CDFIs to audiences outside of the finance industry. Strong written and verbal communication skills are key for helping funders understand both the big picture and specific updates and accomplishments.
Financial Acumen & Structuring
Because development and investor relations roles raise loan capital as well as grants, practitioners may need a solid grasp of financial concepts or be willing to build this skillset on the job. They help structure investments and financing agreements that align with investor requirements and organizational lending goals.
Sample Job Titles
- Chief Development Officer
- Director of Capitalization/Capital Markets
- Director of Strategic Investments
- Investor Relations Manager
- Development Manager
- Philanthropy Officer
- Vice President of Advancement
- Grant Compliance Specialist
- Associate, Development & Capitalization
Faces of the Industry
