ImpactAlpha, Mar 2 — New Orleans-based Advantage Capital has leveraged more than $3 billion since 1992 for small businesses in underserved communities in Missouri, Mississippi, Arkansas, Kansas and Nebraska.
“We are working in the places where the data shows the jobs are being created, but private equity and venture capital just doesn’t go,” Advantage’s Sandra Moore told ImpactAlpha. The new impact growth fund will focus on ‘growth-ready’ minority-owned businesses in such communities.
“We’re reducing the wealth gap by growing these businesses,” Moore said. “We’re reducing the wage gap by making certain we are creating the opportunity for high-wage and high-benefit jobs.”
The Empower the Change Fund is aiming to raise $200 million, according to an SEC filing. The fund is backed by regional and national banks including U.S. Bank, Truist Bank, Midwest Bank and Southern Bancorp.
New York-based NMSDC Business Consortium Fund will co-manage the fund and bring a pipeline of deals, Moore said. The fund aims to invest in between 40 to 50 minority businesses.