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CEI Capital Management seeks to partner with socially-conscious investors to provide  equity and/or debt to high impact projects located in low-income communities across the country. CEI Capital Management selects its investments primarily based on Triple-Bottom-Line underwriting standards that holistically consider the economic, environmental, and social impacts of the project on the community it serves.

Equity

Equity investors generally may earn a 4% - 14% return on their equity investment* over the course of the seven-year term of statutory NMTC compliance period through the receipt of federal New Markets Tax Credits (NMTCs).  Equity capital invested along with debt into a NMTC qualified business, will allow the equity investor to make use of NMTCs to offset their Federal tax liability, which is paid out in near-equal increments over a seven-year period.  The return on equity is principally determined by the value of the federal tax credits and price the equity investor pays for those credits. 

So long as both the project and CEI Capital Management remain in compliance with the New Markets Tax Credit Program throughout the seven-year term, the equity investor will benefit fully* from the tax credits.  Equity investors may also receive Community Reinvestment Act (CRA) credit for participating in NMTC transactions within their service area.  For more details on how the tax credits are calculated and disbursed, please visit How NMTCs Work.

Debt (“Leveraged Loans”)

CEI Capital Management also offers opportunities to invest senior and subordinated debt at market rates*, in amounts that range from $3MM - $15MM, and at terms that range from seven to 30 years.  Lenders should note that the majority of our NMTC transactions are interest only for the duration of the seven-year compliance period, although minimal amortization may be accommodated in special circumstances.  Additionally, lenders must be comfortable with indirect collateral.  Lenders may also be eligible for CRA credit.

Funding sources may elect to provide equity, debt or both.

For questions regarding investment, please contact inquiry@ceicapitalmgmt.com

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* The situations described above are for illustration purposes only and are not a guarantee of return.