What are Strategic Investments?
Strategic Investments are NRFC’s primary grantmaking activities, by means of which it supports promising and compelling collaborative strategies for overcoming rural poverty and bringing about rural community transformation at the regional level. NRFC has identified selected rural regions, of various sizes, in which to engage in strategic grantmaking and related capacity building activities. Its strategic grantmaking consists of three-year grants in the range of $100,000 – $250,000 per year to regional, multi-faceted and mulit-partnered collaborative rural initiatives working to bring about lasting and comprehensive rural community transformation in rural areas of persistent poverty. Currently, NRFC has strategic regional investments in five regions and collaborative strategies: • Alaska Rural Community Health Economic Strategies; • Appalachia Ohio Regional Investment Coalition; • Central Valley Partnership for Citizenship; • New Mexico Rural Livelihoods Initiative; and • South Carolin
Distressed or “strategic” investments are made in the debt of operationally sound, financially distressed, U.S. middle market companies using a control-oriented strategy that focuses on the debt of smaller, less liquid issuers in industries in which CIP has demonstrated expertise.Distressed investing offers investors the opportunity to earn high, risk adjusted returns.
The term “strategic investments” is used in two different ways in the financial world. In the first sense, it applies to investments made by individuals or companies with the goal of generating safe, steady returns, usually with the advice of a consulting company which keeps up with trends in the market and addresses the needs of the customer. This term is also used to describe a company’s decision to invest in another, smaller company, usually a startup, with long-term strategy in mind, rather than simple profit. In the second sense, strategic investments are often used to raise capital and credibility for new companies which are struggling to make their way in the market. Larger companies make strategic investments in smaller ones for an assortment of reasons. For example, a big company might invest in a smaller company which makes similar products, or in a small company which will eventually become a client of the big company. Forward-thinking companies may also want to make strateg
