Climate Finance | September 13, 2021

Impact Engine joins Mosaic on Zero Waste Recycling employee-ownership deal

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, September 13 — Chicago-based Impact Engine is investing in employee-owned firms as a means to bridging wealth gaps (for context, see “These 12 impact funds are catalyzing transitions to employee ownership”).

With Charlotte-based Mosaic Capital Partners, it invested in Zero Waste’s employee stock ownership plan, or ESOP, to “convert company ownership 100% into the hands of all employees at no cost,” wrote Impact Engine’s Priya Parrish.

Zero Waste provides waste management services for U.S.-based manufacturing companies. More than 90% of its employees are Black, Indigenous and other people of color with low to middle incomes.

Mission-driven investors

Impact Engine invested via Mosaic’s private equity employee-ownership fund. It believes the fund “will generate paradigm-based impact by setting an example for other private equity and credit investors to invest this way,” wrote Parrish.

Other partners in the deal include Lafayette Square and Morgan Stanley Private Credit.