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Dear Commonwealth Investor:
 
On January 1, we executed the transition from Sagamore Investments to Commonwealth. And several months later, we created Commonwealth Ventures, LLC to deliver commercial-grade private equity services to catalyze premium impact investing opportunities. The combined effort to launch the new 501c3 and LLC – together operating as Commonwealth Impact Investing – fostered numerous internal systems improvements. Please see some highlights below.


COMMONWEALTH VENTURES
Commonwealth Ventures is a wholly owned subsidiary of Commonwealth’s 501c3 parent organization. To help fulfill Commonwealth’s original vision of accelerating high quality deal flow for faith-inspired impact investors, Commonwealth Ventures was created to sponsor our impact investing opportunities that demonstrate excellent economics and superior social impact.

To lead this effort, Commonwealth has recruited John Handelsman. With 35 years of experience in specialty finance, strategic leadership, and consulting, John has a proven track record in leading businesses to success. Most recently, he was the Chairman and CEO of The Garage Group, a boutique innovation consultancy to the F500 in the CPG, Food & Beverage and Financial Services industries.

Commonwealth Ventures has selected COhatch as its debut transaction because it offers the highest rated investment opportunity that we’ve discovered in all three key impact categories: (1) economic return on investment; (2) social impact via community renewal and entrepreneurship support; and (3) faith-driven outcomes. Learn more about John and Commonwealth Ventures here

INVESTOR PORTAL
Commonwealth is developing an investor portal that will provide users with 24/7 access to information on their portfolio allocation and performance. Through the portal, investors will be able to view cash balances, capital deployed and returned, and the allocation of funds across impact categories. Additionally, investors can generate customized statements, make capital commitments on new opportunities, execute documents, and access a file vault that houses historical information and bi-annual investment reports. We are scheduled to launch the new system in late August.

FEE STRUCTURE
For the first three years of operation, Commonwealth waived its management fee as a means of building our community and high quality deal flow. Now, with 90 impact investors, 22 portfolio companies, and $7.2M in assets under management, we are upgrading internal systems and hiring additional staff, as described above. With these enhancements, Commonwealth has begun to collect its annual management fee of 1%, as described in our donor advised fund and LLC operating agreements (for private capital investments), for deals that originate from our investor community and entrepreneurs we support in select deals.

This initial fee, charged in July and reflected on your next statement, is a prorated 0.5% that covers the remainder of 2021. Thereafter, a management fee of 1% will be charged on January 1 of each year. Note: Commonwealth Ventures investments operates under a different fee structure; please let us know if you’d like to learn more.

Please see the attachment for a list of your investments that are subject to the 1% management fee.

OUR MODEL
Finally, we invite you to review our refined model. We are grateful that our transition from the Sagamore Investments beta period has led us to define three tiers of service under Commonwealth: (1) Growth Equity deals sponsored by Commonwealth Ventures; (2) Impact Accelerators combining entrepreneur consulting services with reasonable returns; and (3) a CW Marketplace for our donor-initiated deals.

Thank you for your trust in Commonwealth, support of our mission, and like-mindedness in seeing the Kingdom of God advanced through enterprise. If you have questions about the information contained in this update, please don’t hesitate to contact us directly.

Sincerely,

Mike Humphrey
Chair, Board of Directors
Jay Hein
Managing Director
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