Black Money Series: A Conversation with Ryan Zerwer from Forward City Investments

Justin Minott from the African American Alliance of CDFI CEOs interviews Ryan Zerwer, President and CEO of Forward Cities Investments, focusing on his journey, mission, and the impact of his work. Here is a brief recap of this powerful conversation:

Justin Minott: What song are you currently jamming to that gets you hyped?

Ryan Zerwer: I’m really into Thylacine right now. He remixes classical composers with intense, dramatic music. It’s the perfect work music for me—like Mozart meets synthesizers and powerful drums. I love playing it loud in the office before anyone else arrives. That's what gets my day going.

Justin: Can you share a bit about who you are at your core?

Ryan: I’m an intensely passionate person. When I focus on something, I give it my all. I grew up in a household that emphasized performance, which shaped my mindset to always strive for excellence and make my parents proud. This intensity drives how I approach personal and community goals.

Justin: How do you channel that intensity without falling into perfectionism?

Ryan: That’s a challenge for me. While I believe in continuous improvement, I also recognize that perfection isn’t necessary. I’m in a CDFI that’s been around for 30 years, and I’m here to amplify its impact. My approach involves critically evaluating our programs and asking whether we’re being as intentional as possible. It’s about being proud of our work while also pushing ourselves to dig deeper and enhance our outcomes. We need to ensure our efforts align with our ambitious mission.

Justin: How did you end up in your current role, and what’s your journey been like?

Ryan: My career has been a series of happy coincidences rather than a straight path. I started with a liberal arts background and eventually moved into the tech space as a CFO for a software development company. This shift was unexpected but rewarding. I also have a long-standing interest in investing, starting at age 13, which shaped my financial perspective. I became a student of successful investors like Warren Buffett and Benjamin Graham, learning from their strategies.

Justin: What was your investing experience like at 13?

Ryan: It was a mix of trial and error. I didn’t know much, so I experimented with both fake and real portfolios. I focused on learning from established investors and developed my own investment philosophy over time.

Justin: How did your background in finance help you in your career?

Ryan: My finance and investing experience, particularly in real estate, equipped me to navigate banking environments. Understanding how to underwrite my own deals allowed me to communicate effectively with bankers, which is crucial in finance. I learned to tailor my presentations to their perspectives, making it easier to achieve my goals. Unlike many in the CDFI space, I’ve always been on the customer side of banking, which gives me a unique viewpoint.

Justin: How did your investment experience lead to your role as president and CEO of a CDFI?

Ryan: It was somewhat random. I was managing my real estate portfolio and cycling a lot when a friend on FCI's board suggested I consider the CEO position. Although I had no nonprofit experience and didn’t initially understand what a CDFI was, I was passionate about social justice and racial equity. The organization was looking for someone to drive accountability and impact, which aligned with my background in finance.

Justin: What challenges did you face when you joined the CDFI?

Ryan: The first six months were a steep learning curve. I had to grasp the CDFI's financial model and its impact. I realized the importance of being strategic about how we deploy capital and measure outcomes rather than just relying on traditional narratives.

Justin: How have you approached improving the CDFI’s impact?

Ryan: I focused on making our processes more data-centric. Funders now demand accountability for impact, so we needed to track whether our programs were achieving their intended outcomes. This meant reengineering our infrastructure to ensure we could scale effectively and demonstrate the impact of our investments.

Justin: What has surprised you most about the CDFI space?

Ryan: My personal experiences in Milwaukee opened my eyes to the complexities of the communities we serve. Before joining FCI, I only knew Milwaukee as a tourist. Now, I see the critical work being done to stabilize neighborhoods and provide essential services. It’s clear that affordable housing is just one piece of a much larger puzzle that includes jobs, community safety, and access to services. Understanding these interconnected factors has deepened my appreciation for the work we do.

Justin: How does the community inform your work at Forward Community Investments (FCI)?

Ryan: FCI has built a strong reputation over 30 years, allowing us to be involved in many community conversations. It's crucial to immerse ourselves in these communities to truly understand their needs rather than making assumptions from a distance. We aim to connect people with resources, whether that’s linking them to other CDFIs or government agencies that can assist in funding.

Justin: What does FCI do overall?

Ryan: Originally we were focused on homelessness in Madison. Over time, FCI has evolved to address broader socioeconomic and racial disparities. We primarily serve as nonprofit community facility lenders, helping organizations secure spaces for their operations and services. Our main goal is to support those tackling root causes of issues like homelessness.

Justin: How are you expanding your approach to address community needs?

Ryan: We've introduced programs aimed at fostering wealth building in communities of color, recognizing that many individuals want to enter the real estate space but lack access to capital. Our diversity in real estate program helps these aspiring investors acquire properties and build portfolios, providing predevelopment loans to support their efforts.

Justin: How do you ensure sustainability while taking risks on underserved individuals? 

Ryan: Currently, we assess potential borrowers based on their experience and education in the development space, ensuring they have the knowledge to navigate risks. However, we envision incorporating a forgiveness component into our predevelopment loans, allowing individuals to pursue projects without the fear of incurring unmanageable debt if a project doesn’t materialize.

Justin: What challenges do you face in implementing these changes?

Ryan: Securing capital for forgivable loans is a significant challenge. We need to establish loss reserve capital to de-risk these investments, allowing us to support more individuals entering the development field, particularly those from communities of color.

Justin: How do you view the complexity of community needs?

Ryan: While many communities share similar overarching issues—like affordable housing—the specifics can vary greatly. For example, affordable housing in Milwaukee looks different from that in Green Bay. We must listen closely to understand these nuances and tailor our solutions accordingly. It’s a process of continuous learning and adaptation.

Justin: What does the future look like for FCI?

Ryan: We're starting a new three-year strategic plan as part of our CDFI recertification. We aim to scale our capital to meet the high demand, diversifying beyond our reliance on new market tax credits. This approach will help us provide more flexible and innovative support to our communities.

Justin: How do you envision scaling your operations?

Ryan: We need to focus on sustainability, reducing dependency on grants or tax credits. Our goal is to become self-sustaining so that we can reliably serve our communities. We also want to broaden our financial tools beyond debt capital, integrating grants and other resources to meet specific community needs.

Justin: Can you explain your approach to community investment?

Ryan: Instead of treating our investments as isolated projects, we're concentrating on specific communities. By investing in multiple initiatives within a neighborhood, we aim for a compounding catalytic effect. This way, we can better track outcomes and support holistic community development.

Justin: What does "theory of change" mean for FCI?

Ryan: It’s about understanding the broader impact of our actions. For example, in Milwaukee, we’re involved in a program to renovate tax-foreclosed homes. While one renovated home is a success, we need to address surrounding blighted properties to create lasting change in the neighborhood.

Justin: How do you navigate leadership in a changing organization?

Ryan: Leading change involves collaboration. Everyone on our team should have a voice in shaping strategy, creating a sense of ownership. This collective effort fosters passion and commitment to our goals, making it easier to implement changes and adopt new technologies.

Justin: What does black liberation mean to you?

Ryan: It embodies self-empowerment and independence. It’s about recognizing our capabilities and forging our paths despite barriers. We have the talent and resources within our communities to succeed; we just need to be fearless and collaborative in pursuing our goals.

Justin: What are your thoughts on mental decolonization within the Black community?

Ryan: While it's a complex issue, it’s crucial to recognize how internalized beliefs can affect our actions. We often carry perceptions that limit our potential. Acknowledging this is the first step toward empowerment and liberation. 

Justin: You mentioned cycling at the top of the show. What has it taught you about leadership? 

Ryan: Cycling has taught me two main things about leadership. First, the sport itself emphasizes physical endurance and perseverance. In cycling, you constantly push your limits, aiming to ride just above your comfort zone. This process of discomfort helps you grow stronger. It’s a mental challenge; you often find yourself thinking, "This hurts, and I don’t feel like pushing through," but that’s where growth happens.

Second, cycling in Dane County offers incredible infrastructure. The roads, originally built for dairy deliveries, create a stunning network that allows for peaceful rides, often with minimal car traffic. For me, cycling is meditative—it’s where I do my best thinking. As I pedal, I reflect on ideas for FCI, how to innovate our programs, and how to effectively communicate our goals to investors and teammates.

Justin: How do you apply these lessons in your work?

Ryan: It's twofold. There’s physical endurance. The physical aspect of cycling teaches me to push both myself and the organization to improve continuously. You're always trying to understand what your threshold is and then be just above that threshold because that's how you grow. Right? Meanwhile, the meditative time on the bike helps me formulate my thoughts and find the right words to communicate effectively, which is essential for achieving our objectives. 

Justin: Thank you so much for being here. Thanks for being who you are and bringing so much heart to this space, so much good, robust thought to this space as well.

Ryan: I appreciate being here, Justin, very much. 

Thank you for reading! You can watch the full interview HERE. Be sure to connect with Ryan Zerwer and follow him HERE to stay connected to the impact.