Martin Muoto started SoLa Impact to facilitate investments for affordable housing and economic opportunity in underserved communities. Based in South L.A., SoLa has deployed over $1 billion into minority communities through affordable housing developments and wealth building platforms.
Of the tenants residing in housing projects funded through SoLa Impact, 85% are from disadvantaged backgrounds, 53% were homeless, one-third are survivors of domestic violence and 60% live below the poverty line. SoLa’s real estate funds include the Opportunity Zone Fund and the Black Impact Fund.
Recently, the firm closed $29 million in new markets tax credit financing which will fund a new tech center and culinary training facility at the Crenshaw Lofts, a 190-unit mixed-use project.
What drew you into impact investing, and how does SoLa Impact’s work align with your interests?
My experience in private equity showed me the power of capital, and I wanted to explore how it could be used to drive meaningful social change. I founded SoLa Impact to invest in communities that have been overlooked and under-resourced for decades. South Los Angeles is one of those places.
Our work centers on building high-quality affordable housing and economic opportunities in historically Black and brown neighborhoods. Impact investing allows us to align our business strategy with the values of equity, dignity and long-term community stability.
What are your investment criteria/requirements for the projects you finance?
We invest in areas where there is both deep community need and strong potential for transformation. We look for projects that are financially sound but also have the ability to deliver tangible social outcomes.
Our criteria include location in underserved neighborhoods, the ability to provide deeply affordable housing, a connection to workforce or educational development and alignment with long-term sustainability goals. Every project is evaluated not only for financial return but also for how it contributes to closing the racial wealth gap and expanding opportunity.
How does your firm strike the balance between profitability and social good?
We operate with the belief that social impact and financial performance can and should reinforce each other. By focusing on high-impact neighborhoods and addressing unmet needs, we have created a model that produces competitive returns while delivering measurable social outcomes.
The success of our Black Impact Fund, which includes significant investments from institutional partners like CalSTRS and PayPal, is a clear example of how institutional capital can be mobilized to build housing, create jobs and support wealth generation in communities of color. We measure both the financial returns and the real-world results, and we hold ourselves accountable to both (areas).
To what extent have the recent wildfires in Los Angeles affected the firm’s focus or priorities?
The recent wildfires have underscored the urgent need for affordable housing in Los Angeles. In response, SoLa Impact and its nonprofit affiliate, the SoLa Foundation, launched the “Together We Rebuild” campaign. This initiative provided immediate relief to over 1,000 families affected by the fires, distributing more than $1 million in funds and resources, including financial assistance, housing placement, household goods, technology and wellness care.
The campaign also hosted a day of recovery and resilience at The Beehive, bringing together over 50 nonprofit, corporate and government partners to support long-term recovery efforts. These actions have reinforced our commitment to addressing housing insecurity and supporting vulnerable communities in times of crisis.
Tell me about some of the projects SoLa is working on and how those tie into the principles of impact investing. Can you provide some tangible results of the work SoLa Impact does?
One of our signature initiatives is The Beehive, a 92,000-square-foot campus in South L.A. that supports local entrepreneurs and job creation. Our SoLa Tech and Entrepreneurship Center, powered by Riot Games, has served more than 3,000 students, and we are preparing to open a second center in partnership with Live Nation later this year.
We also launched a vocational training school at the Model/Z factory in Watts to help residents build careers in construction and manufacturing. We have provided stable, long-term housing for over 100 households that were previously experiencing or at risk of homelessness.
In our digital inclusion work, we have provided laptops and internet access to families who had previously been disconnected. Each of these efforts is grounded in our broader goal of increasing access to housing, education and opportunity.
What does the future of impact investing look like to you?
Impact investing is moving toward becoming a mainstream approach to capital deployment rather than a specialized strategy. More investors are recognizing that long-term value creation is tied to social and environmental outcomes.
In the future, capital will be evaluated by the return it generates and the problems it helps solve. Data and transparency will be critical, and so will leadership that comes from within the communities being served.
I see a future where investing in equity is seen as both the right thing to do and the smartest way to build thriving economies.
