Social Finance Launches $21M Local News Impact Investment Fund Backed by MacArthur, Knight

Social Finance has launched the Local News Impact Investment Fund with $21 million in initial commitments from Social Finance, the Knight Foundation, the MacArthur Foundation and Press Forward, executives told Axios. The fund will make investments of $500,000 to $2 million in for-profit and nonprofit local news outlets. Social Finance, a nonprofit registered investment adviser, will manage the fund and conduct due diligence on deals. The vehicle is intended to help outlets build growth strategies and invest in technology that expands revenue sources. For MacArthur, the commitment marks its first financial investment in local news through its impact investing program, drawn from a $750 million pool of catalytic capital. John Balbach, MacArthur's director of impact investments, described it as "a more patient, more flexible, more risk-tolerant form of investing." The fund aims to reach $30 million to $35 million over the next two years, said Social Finance President and COO Kirstin Hill. The Knight Foundation recently made a $5 million impact investment in Canadian local news company Village Media.