Equity investments include, but are not limited to, any instruments representing ownership shares in an enterprise (e.g., common, preferred, and other capital stock).
Investments made in for-profit companies in which the CDFI receives an ownership interest in the equity (stock) of the company.
An investment in a for-profit CDFI (typically a community development venture capital fund) where the investor owns a percentage of the equity or shares in the fund and the investor's return is based on the performance on the fund.
The development and financing of infrastructure projects for which the company also uses its own capital. The goal of such investments is to earn annual dividends and participate in the long-term value growth of the investment.
Investments in which the investor is considered an "owner" in the asset. Usually considered higher risk than cash or debt instruments, the rate of return on an equity investment is never guaranteed.