NEW YORK--(BUSINESS WIRE)--Tiedemann Advisors, one of the largest independent U.S. investment and wealth advisors for ultra-high-net-worth families, trusts, foundations and endowments, and StoneCastle Cash Management, LLC (“StoneCastle”), a leading financial technology company that seamlessly connects individuals and organizations to over 800 banks, today have jointly announced that Tiedemann will offer a new cash solution that helps fully integrate impact into client portfolios. FICA® Impact allocates cash to community banks that redeploy this funding into loans and community reinvestment programs to create jobs, build infrastructure and schools, and expand social programs.
“Our clients have increasingly expressed interest in total portfolio activation, and after struggling to identify quality, competitive-yielding cash options in the impact space, we decided to work with StoneCastle to offer a solution of our own,” said Michael Tiedemann, Co-Founder and CEO of Tiedemann Advisors. “Now, we can democratize access to capital by using financial technology to unlock impact opportunities in communities nationwide.”
Despite community banks holding only 17%1 of assets in the banking ecosystem, those institutions are responsible for approximately half of all small business loans and play a meaningful role in job growth, small business entrepreneurship, access to capital, and sustainable community development. The impact strategy targets populations where the impact factors are at least that of two times the national average (i.e., twice the level of average poverty, increased minority population, etc.).
In accordance with FDIC insurance limits, cash deposited through FICA Impact allocates these deposits in increments of no more than $250,000 per tax ID per bank across the network of over 700 community banks nationwide that comprise the impact bank network, excluding those based in the 20 wealthiest cities in the country. This provides UHNW families and organizations full FDIC insurance on balances up to $50 million per tax ID.
“Impact investing should begin with your cash,” said Joshua Siegel, Chairman and CEO of StoneCastle. “We are excited to work with Tiedemann to offer a solution for individuals, families, and organizations seeking to direct their cash through a more responsible and impactful approach until their ideal long-term impact investment opportunity is identified.”
FICA Impact benefitted from the advice and counsel of Clara Miller, former President of the Heron Foundation from 2011 to 2017. She added, “It’s amazing to see how far the impact space has grown. We look forward to seeing how FICA Impact allows impact investors to generate social good and allows capital to work towards impact goals by supporting community growth and development.”
About Tiedemann Advisors
Tiedemann Advisors is an independent investment and wealth advisor for high-net-worth individuals, families, trusts, foundations and endowments. Founded in 1999, Tiedemann has nine offices across the U.S. and provides trust services through Tiedemann Trust Company, a state-chartered trust company located in Wilmington, Delaware. Together, Tiedemann oversees approximately $21 billion in assets under advisement with over $2.4 billion in impact investments2. For more information go to www.tiedemannadvisors.com.
About StoneCastle Cash Management, LLC
StoneCastle Cash Management, LLC is a leading administrator of insured cash solutions for many of the world’s largest institutions, family offices, financial intermediaries, municipalities, colleges and universities, hedge funds, and endowments and foundations. StoneCastle is backed by the strength and stability of world class partners, Charlesbank Capital Partners and Canadian Imperial Bank of Commerce (CIBC).
1 – FDIC: Statistics on Depository Institutions
2 – Assets under advisement and impact asset numbers are as of 07/2019.