As West Palm Beach continues to grow, workforce housing remains an important part of the conversation surrounding the city’s development. Providing housing opportunities for teachers, healthcare professionals, first responders, and other essential workers is a priority that requires collaboration among developers, local organizations, and the philanthropic community.
For Sean Davis, Founder and CEO of Merton Capital Partners, the opportunity lies at the intersection of philanthropy and private investment, where charitable capital can be strategically deployed to expand housing opportunities and generate measurable, long-term community impact.
Rethinking the Role of Philanthropy
Merton Capital Partners operates through a model known as philanthropic private equity, using charitable capital to support private-sector developments that deliver measurable social outcomes.
Traditionally, philanthropic contributions are distributed as grants or donations. Merton’s approach introduces another possibility: structuring philanthropic investments as loans or equity that can eventually be returned and reinvested.
In workforce housing, this capital can help developers address financing gaps, support reduced rental rates, or make additional residential projects financially feasible. The model is designed to create a continuing cycle of investment, with funds potentially supporting new developments after their initial deployment.
“There isn’t a lot of capital in the system to build housing for the people who need it,” said Davis. “We want to use philanthropy to step into the private market of private housing and allow developers who have capacity to build more to do so.”
From Wall Street to West Palm Beach
Before founding Merton Capital Partners, Sean Davis built his career in private equity, beginning at J.P. Morgan in New York before joining Advent International and later Saratoga Partners, where he specialized in leveraged buyouts and corporate restructurings.
After years in finance, Davis began seeking a greater sense of purpose in his work, eventually transitioning into the nonprofit sector. At The Lord’s Place and later The Salvation Army of Palm Beach County, he witnessed firsthand the challenges charitable organizations face in securing consistent funding while addressing complex community needs.
That experience sparked an idea: What if the investment strategies he knew so well could be applied to philanthropy?
Davis discovered that the concept wasn’t entirely new. Program-related investments, which allow foundations to invest in mission-driven ventures, have existed since the 1960s but remain relatively underutilized.
Recognizing an opportunity to bridge these two worlds, Davis founded Merton Capital Partners, combining his financial expertise with his nonprofit experience to develop an investment model capable of moving the needle on some of the community’s most pressing challenges.
Expanding the Model
Merton Capital Partners’ first initiative, The Spruce, demonstrates the potential of its philanthropic investment model. Located in West Palm Beach’s Northwood neighborhood, the 270-residence development by Affiliated Development offers both market-rate and workforce housing.
Through a $100,000 zero-interest philanthropic loan, Merton helped reduce rent for a two-bedroom residence by approximately $1,000 per month for ten years, representing $120,000 in potential savings. Unlike a traditional donation, the original capital is structured to be returned and reinvested in future housing projects.
Building on this success, Merton is pursuing additional developments in West Palm Beach, with a pipeline representing more than $100 million in philanthropic capital and over 1,300 residences. Projects include a committed 191-residence development and two proposed 270-residence developments, using financing strategies ranging from gap financing to philanthropic equity.
As these projects progress, Merton aims to bring its philanthropic investment model to more developments, both within Palm Beach County and beyond.
A Collaborative Approach to Housing
Workforce housing is a recognized priority in Palm Beach County, which maintains programs intended to increase housing opportunities for residents employed in the local economy.
Merton Capital Partners adds another financing approach to that broader effort, connecting philanthropic resources with private development expertise. For Davis, the focus is on creating investments that produce measurable outcomes while preserving the potential for continued giving.
As West Palm Beach’s residential landscape evolves, initiatives such as The Spruce offer a practical example of how philanthropy can participate in housing development. And with additional projects in the pipeline, Merton Capital Partners is working to extend that approach to more residences, more developments, and potentially more communities.
For more information, please visit https://www.mertoncp.com/
Stay updated with the Altima Collective’s luxury lifestyle newsletter.
The newsletter you know and trust now with new voices, fresh perspectives, and always served with a side of caviar!
