Gate Technologies announced today its entrance into the impact investment market with the pilot launch of Gate Global Impact (Gate Impact), which was made possible with a $2.5 million lead investment by Prudential Financial (NYSE:PRU) through its Social Investment Program.
GATE Global Impact utilizes an innovative, new technology platform to create an automated infrastructure to monitor impact investments - public and private investments designed to generate a financial return and address social and environmental needs. The platform - called GATEWAY - provides research, analytics, trading, settlement, and clearing and reporting functions for socially and environmentally responsible investments.
"We're delighted to partner with Prudential in paving the way for this new investment practice," said Vincent Molinari, co-founder and chief executive officer of GATE Technologies. "Prudential is one of the first companies to have a devoted impact investment portfolio. Its long history in this market will help us define this growing area."
The Prudential Social Investment Program manages more than $500 million in portfolios comprised of private placement debt, equity and various tax credits, including those for low-income housing and new markets.
"Prudential is deeply committed to supporting local communities throughout the United States and around the world by investing in activities that provide positive sustainable impact," said Preston Pinkett, vice president, Social Investments, at Prudential. "To meet the dual goal of positive social impact and satisfactory market return requires an infrastructure that can measure the performance of these types of investments. GATE Global Impact provides that missing element." Pinkett will serve as a member of the GATE Global Impact board.
The GATEWAY pilot phase involves Prudential's social impact portfolio. The platform will be expanded broadly for institutional investment managers later this quarter. GATE Global Impact and Prudential will partner to define what investments can be traded on the platform.
GATEWAY is a flexible, multiple-window system that lets users monitor current and former trading activity any time. It uses a secure, encrypted connection to give the account full access to all functionality and it meets or exceeds regulatory standards.
Molinari said GATE Technologies structured GATE Global Impact along the lines of other GATE Developing Markets, which provide new market infrastructure for emerging alternative asset classes.
Jeanne Murtaugh, head of strategies at GATE Technologies, has been named vice chairman of GATE Global Impact. In addition, William J. Davis III has joined GATE Global Impact as president with responsibility for U.S. operations. Davis, Murtaugh and Molinari serve on the GATE Global Impact board. In addition, Lori Livingston, co-founder of GATE Technologies and founder of Transfer Online, a stock transfer and registrar agency, has joined the GATE Global Impact board.