Private debt manager Channel supports the innovation economy with short-term, flexible, and non-dilutive funding, often with an eye towards sustainability and impact initiatives.
It is Channel's partnership with a fintech platform to support affordable high-speed internet connectivity for low-income households in the US Affordable Connectivity Program (ACP), that earned it three wins in this year's IMPACT awards.
The ACP brings digital connectivity to underserved communities in the US. Eligibility is determined by the US government's Poverty Guidelines and includes families enrolled in federally sponsored housing, and affordable housing programs. Through its provision of private short-term funding, Channel supports the funding of ACP internet service providers (ISPs), which may otherwise struggle to offer services to harder-to-access communities of underserved residents.
In the post-pandemic world, broadband and digital connectivity have proven to be a socio-economic equaliser, adds Channel. However, with nearly 20 million households signed up to the ACP, some fear the programme may run out of funding as soon as 2024.
"Channel is proud to be one of few private debt/fintech providers to ACP participants including ISPs via its unique partnership with technology platforms. With funding now in question, Channel is bridging the gap in private debt markets to support households in federally supported housing in rural and urban areas alike," said Walter Gontarek, CEO and chair of Channel.
When reporting on impact, Channel says ESG and impact evaluations are integrated across its investment process. Periodic transaction monitoring includes monitoring progress and reporting on ESG matters and impact matrices.
"Our portfolios are underpinned by our well-established security selection criteria, which combine impact and ESG considerations of the investee companies with sectoral analysis. Our ESG due diligence process identifies material ESG controversies and evaluates ESG risk management practices in our underlying companies," added Gontarek.
