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Impact Investing: Non-Concessionary Impact Funds in Real Estate

Can investments target market-rate returns while making a positive impact? This impact investing approach could make it possible.

When you think of impact investing, you might picture solar farms, clean water initiatives, or companies that strive to be good corporate citizens. But impact investing also extends to areas closer to home—like attainable housing, community banking, or healthcare access in underserved areas.

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From ESG to traditional philanthropy, this is your starting point for understanding impact investments.

Impact funds encompass investments that combine market-rate returns with positive impact (e.g. ESG, SRI, non-concessionary impact funds) as well as funds that target positive impact and below-market-rate returns (e.g. concessionary impact investing and venture philanthropy).

The DLP Building Communities Fund is an example of an impact investment fund that addresses America’s affordable housing crisis by financing new attainable multifamily communities in the Sunbelt.

Grants are gifts made by foundations to non-profits, while impact investing seeks both social impact and financial returns, which requires repayment or profit-sharing.

ESG focuses on integrating environmental, social, and governance principles into investment decisions. Impact investing is more outcomes-focused, aiming for measurable social impact alongside financial returns.

Impact investors earn money like traditional investors through interest on loans, or from distributions, dividends, and capital gains from equity investments.

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Rich Delgado

"Some people could just be very generous and philanthropic and donate to folks—that gets you zero return. You know that going into it. But if you're going in with the intention of being an impact investor, most people have the misconception that you have to accept concessionary returns, which means you have to accept a lower return in order to provide that impact. Well that's untrue. You can get really good market rate returns with a measurable impact."

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Rich Delgado

Managing Director of Structured Finance & Capital Markets | DLP Capital

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A Proven Track Record

With over 20 years of work trying to solve the affordable housing crisis and creating wealth and prosperity for our partners and investors, DLP Capital is creating housing, jobs, and prosperity for families across America—and we’re just getting started.

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See how DLP Capital evolved from a small Pennsylvania startup into one of the fastest-growing private companies in America by focusing on a singular problem: the workforce housing crisis.

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