Mainebiz

V O L . X X V I I N O. X X V I N OV E M B E R 2 9 , 2 0 2 1 24 B A N K I N G / F I N A N C E / I N S U R A N C E F O C U S desired outcome is stated up front. An example might be an investor intent on expanding broadband avail- ability in Maine. "e key is that the impact is measurable," says Moore. "Without this investment, only X percent would have broadband. After the investment, a higher percent- age will have broadband access. And there's also a financial return. Some investors might be willing to take a lower financial return because they value this other specific, measure- able, positive social outcome. Others might say they want to get a financial return in line with the market." 3. ESG integration incorporates envi- ronmental, social and governance issues into an investment's risk and return analysis. ESG integration begins with the review and relative rankings of dozens of key indicators related to business performance, such as product quality, labor practices and environmental issues — data that probably haven't been part of investment analyses in the past. ESG investments are viewed as strong prospects for both financial perfor- mance and positive change. Growing interest At Bigelow, the ratio of customers engaged in ESG, values-based and impact investment has grown over the past decade. "I think there's a growing desire among investors to have their port- folio align with their interests," says Moore. "ey know there are these big issues out there, and they want to know that these issues are reflected in your analysis." Tower agrees. "Ranging from billionaire tech entrepreneurs who are giving 99% of their money away, to philanthropy, to young individuals who might be coming into money for the first time and want to make sure that they are using their resources to help others, there's greater awareness today of impact investing," says Tower. "We can't rely on govern- ment alone to solve community chal- lenges, and we can't rely on philanthropy either. Bringing the rigor of a business lens to these types of decisions creates a lot of efficiency and the ability to do it again and again and again." At Arctaris, investors come in with a range of motivations and return profiles. e firm's blended fund structure com- bines capital from charitable foundation and government agencies that are willing to accept lower returns and, often, higher risks, with capital from primarily com- mercial banks and insurance companies that typically seek higher but still moder- ate returns plus community benefits. Developing partnerships With 20 years of experience investing in private equity and private debt, Tower co- founded Arctaris in 2009 with a mission to invest in growth-oriented operating businesses and community infrastructure projects in underserved communities, including Opportunity Zones, inner cities and targeted rural communities throughout the U.S. e goal is to deliver above-market investment returns along- side positive social impact. Tower saw that opportunity at Saddleback. Maine's third-largest ski resort had been closed for five years, idling critical infrastructure that sup- ported winter employment. Arctaris's goal has been to create an environment that attracts workers back to the region. at didn't just mean investment in techno-goodies such as a new high-speed quad lift. It meant devel- oping partnerships with the broader community and with local, state and federal entities, and putting money toward affordable housing, affordable day care and health benefits. "Arctaris frequently creates partnerships with foundations and government agencies, and then uses its own capital to achieve things that would have otherwise been relatively impossible," says Tower. e process includes working closely with communities — an ele- ment considered essential to the suc- cess of an investment. "We don't show up and pro- duce a list of things the commu- nity needs to do to be successful," he continues. "We engage with the local community. We listen to elected leaders, to nonprofit organi- zations, to business leaders, and we help jointly form a plan." » C O N T I N U E D F RO M P R E V I O U S PA G E www.bowmanconstructors.com 207.368.2405 Haley Ward, Inc. Offices - Bangor, ME With over 30 years of commercial construction experience, the team at Bowman Constructors will take your vision and transform it into a view! Let's Connect! ™ FOR ALL MAINE-KIND www.infinitycu.com Bringing the rigor of a business lens to these types of decisions creates a lot of efficiency and the ability to do it again and again and again. — Jonathan Tower Arctaris Impact Fund LP

• Cover