Our Investment Process

Charter school operators seeking funding must apply through CSGF's online Application Portal: Apply Now.  The Application Portal is the first step in a rigorous screening and investment process that includes the following steps:

1. Objective, numerical application process:  CSGF employs an objective, numerical application process that consists of two parts.  In Part I, CSGF evaluates the CMO's value-added student achievement trends and state testing performance relative to similar schools, the district, the state and more affluent schools.  In Part II, CSGF examines leadership experience, financial health, operational capacity and academic program effectiveness.  The entire process is anonymous, which allows CSGF to screen applicants without regard to pre-existing relationships with members of its team or board.
2. Qualitative screening:  Once an applicant has progressed through Step 1, a member of the CSGF team schedules an interview to discuss the investment process.  During this meeting, CSGF seeks to gauge whether or not the applicant is ready to be considered for a large-scale growth investment and aligned with CSGF's mission and investing priorities.
3. Choice of paths:  If CSGF determines that the applicant is worthy of consideration for portfolio financing, the candidate is given a choice of two paths.  If the organization is already equipped with a strong business plan, the CSGF team conducts due diligence and evaluates financing needs within an expedited timeframe.  However, several of CSGF's incoming portfolio members operate only one school, and have yet to develop a full business and strategic plan for growth.  In those cases, CSGF will provide early stage support and guidance in the development of their initial business plan.  Under this scenario, due diligence is conducted in tandem with strategic planning.
4. Due diligence/strategic planning: The CSGF team conducts extensive due diligence on every candidate that it considers for an investment, including evaluating the management team, board of directors, local market conditions, financial expertise, operational effectiveness, and capacity to execute the proposed business plan.  Over a 3-6 month due diligence period, CSGF's team will observe board meetings, conduct school visits, confirm achievement results, engage in iterative exchanges over the business plan, and develop a shared understanding of the strategy and potential with the management team. 
5. Recommendation:  Once due diligence is complete, the investment candidate presents its plan to the CSGF team for portfolio financing consideration.  If the team agrees on a recommendation, the candidate is brought to the CSGF board for final approval.  At the board level, the candidate is approved or denied through a unanimous vote.  Once the board has approved the basic terms of investment, grant and loan agreements are finalized including milestones.
6. Portfolio Management:  Once a CMO enters the portfolio, CSGF assigns a relationship liaison – one of the members of the CSGF team – to monitor performance, attend board meetings, and make periodic site visits.  The nature of the funding relationship depends largely on the growth stage of the CMO.  CSGF receives frequent progress reports including quarterly financial statements from all members of its portfolio.
7. Yearly Review:  At the end of each academic year, all members of the CSGF portfolio prepare and submit a comprehensive report on the progress they made against their milestones for the past year. This review includes an electronic analysis of student achievement data to determine CSGF portfolio member performance versus other comparables.