Tiedemann Advisors, a US investment and wealth adviser for ultra-high-net-worth families, trusts, foundations and endowments, is teaming up with fintech company StoneCastle Cash Management (StoneCastle) to ffer a new cash solution that helps fully integrate impact into client portfolios. “Our clients have increasingly expressed interest in total portfolio activation, and after struggling to identify quality, competitive-yielding cash options in the impact space, we decided to work with StoneCastle to offer a solution of our own,” says Michael Tiedemann, Co-Founder and CEO of Tiedemann Advisors. “Now, we can democratise access to capital by using financial technology to unlock impact opportunities in communities nationwide.”
Despite community banks holding only 17 per cent of assets in the banking ecosystem, those institutions are responsible for approximately half of all small business loans and play a meaningful role in job growth, small business entrepreneurship, access to capital, and sustainable community development. The impact strategy targets populations where the impact factors are at least that of two times the national average (ie, twice the level of average poverty, increased minority population, etc).
In accordance with FDIC insurance limits, cash deposited through FICA Impact allocates these deposits in increments of no more than USD250,000 per tax ID per bank across the network of over 700 community banks nationwide that comprise the impact bank network, excluding those based in the 20 wealthiest cities in the country. This provides UHNW families and organisations full FDIC insurance on balances up to USD50 million per tax ID.
“Impact investing should begin with your cash,” says Joshua Siegel, Chairman and CEO of StoneCastle. “We are excited to work with Tiedemann to offer a solution for individuals, families, and organisations seeking to direct their cash through a more responsible and impactful approach until their ideal long-term impact investment opportunity is identified.”
FICA Impact benefitted from the advice and counsel of Clara Miller, former President of the Heron Foundation from 2011 to 2017. She adds: “It’s amazing to see how far the impact space has grown. We look forward to seeing how FICA Impact allows impact investors to generate social good and allows capital to work towards impact goals by supporting community growth and development.”