Advantage Capital and the NMSDC Business Consortium Fund Announce New Private Growth Fund

ST. LOUIS & NEW ORLEANS & WASHINGTON–(BUSINESS WIRE)–Advantage Capital and the NMSDC Business Consortium Fund (BCF) announced today the launch of a new fund dedicated to providing access to capital to minority-owned business enterprises (MBEs). The partnership represents a unique paring that brings together the BCF’s 35-year history of providing access to capital to entrepreneurs of color with Advantage Capital’s 30 years of investment expertise in highly distressed urban core and rural communities.

The mission of the fund is to close the racial wealth gap by investing in entrepreneurs of color who are building the products and services of the future. The fund will provide flexible risk capital to support minority businesses and help them scale.

“After the social unrest that ensued in the summer of 2020, my partners turned to me as the Chief Impact Officer to guide our firm’s response,” said Sandra M. Moore, Chief Impact Officer and Managing Director at Advantage Capital. “I knew we needed to continue to do what we do best—deploy capital to businesses in capital starved markets—but with a laser focus on supporting MBEs to provide them with flexible financing solutions to support growth and create wealth in minority communities.”

The typical white household has eight times the wealth of the typical black household. This wealth gap results in a start-up capital gap. Black entrepreneurs begin with one-third of the capital of their typical white counterpart. This lack of capital and collateral makes it harder for entrepreneurs of color to attract outside funding. A fund that focuses on growth-ready MBEs seeks to mitigate these realities, and in doing so, makes a critical first step in eradicating wealth disparities in minority communities.

“We believe the best way to close the racial wealth gap and scale minority businesses is to invest in entrepreneurs of color,” said Henry Childs, Chief Fund Manager, NMSDC Business Consortium Fund. “This fund will fill the void in access to capital for minority-owned businesses and revitalize our communities.”

With capital commitments from U.S. Bank, Truist Bank, the Society for Human Resource Management (SHRM), Busey Bank, Midwest Bank, Southern Bancorp and Altria, the fund anticipates it will start deploying capital to support minority-owned businesses in the next few months.

“This is a great opportunity to invest in innovative companies in communities that have historically lacked access to capital. Our investor partners recognize that through focused finance for minority-owned businesses, we can enter into new markets, nurture strong business growth to build local economies and achieve strong returns—a truly double-bottom line investment strategy,” said Brian Anderson, Principal at Advantage Capital.

“This is a unique opportunity to change the financial landscape for minority entrepreneurs and deliver on Truist’s purpose to inspire and build better lives and communities,” said Lauren Butler, Truist Community Development Financing Initiative Relationship Manager. “We’re pleased to join this group of institutional investors who are committed to equitable financing in establishing a platform to support these underserved businesses.”

“Investing in this fund helps us expand the way we as a bank are working to help close the racial wealth gap and build wealth in communities of color,” said Zack Boyers, Chief Executive Officer of U.S. Bancorp Community Development Corporation (USBCDC), the bank’s community investment and tax credit division. “We are focused on finding opportunities to create more access to capital for minority owned businesses and private equity allows us to do that in a different way than we have before.”

“HR professionals know equal access to jobs is a critical component of the fight to eliminate racial disparities in America. But we must also ensure Black entrepreneurs have access to critical capital so they, themselves, can become job creators,” said Johnny C. Taylor, Jr., SHRM-SCP, SHRM President and Chief Executive Officer. “SHRM’s support of minority-owned business enterprises demonstrates our commitment to address barriers and to help close the racial wealth gap so everyone has the opportunity to thrive equally. The push for inclusion and business equity is ongoing and must include everyone.”

“Investing in Black and Brown business development has been a core tenet of our commitment to racial, economic and social equity,” said Jennifer Hunter, Senior Vice President, Corporate Citizenship, Altria Client Services LLC. “We are pleased to step forward in another way with this business impact investment. The fund promises to help small business owners grow and begin to close the longstanding wealth gap among entrepreneurs of color.”

“We are excited to be a part of this innovative investment initiative, furthering our efforts to deliver meaningful impact to minority-owned businesses and communities that have historically faced barriers to capital,” said Willie Mayberry, Busey Bank Executive Vice President and President of Regional Banking. “This fund creates real opportunity by building an excellent ecosystem of institutional investors paired with a strong network of MBEs.”

About Advantage Capital

Advantage Capital provides financing to established and emerging companies located in communities underserved by conventional sources of capital. Since 1992, the firm has invested more than $3 billion in companies from a diverse array of industry sectors and has helped support more than 50,000 jobs. Learn more at www.advantagecap.com, or via Twitter or LinkedIn.

About the Business Consortium Fund

The National Minority Supplier Development Council Business Consortium Fund, Inc. is a certified United States Department of the Treasury Community Development Financial Institution. BCF is America’s most comprehensive financing and consulting support organization exclusively serving NMSDC certified minority-owned businesses.

Advantage Capital is an investment adviser registered under the Investment Advisers Act of 1940. Registration does not imply a certain level of skill or training. This release is not intended to be an advertisement concerning investment advisory services or an offer to sell or a solicitation of an offer to purchase any security or investment product, including any interest in any fund or investment vehicle managed directly or indirectly by Advantage Capital. Any such offer or solicitation will be made in compliance with applicable state and federal securities laws pursuant to a confidential offering memorandum or similar documentation. Advantage Capital is an equal opportunity provider.

Contacts

Advantage Capital
Jeff Grass, Vice President, Communications

jgrass@advantagecap.com

Advantage Capital
Joe Stosberg, Communications

jstosberg@advantagecap.com