Private Equity Fund Launches to Close the Racial Wealth Gap
A new private equity fund founded to close the racial wealth gap through the creation of employee-owned businesses, announced a first close on Wednesday with the investment backing of major foundations, including Ford, Rockefeller, and Skoll.
A worker cleans a table in front of a Starbucks at Rockefeller Center in New York as it sits closed last March in New York.
Apis & Heritage Capital Partners Announces Initial Close of
$30 Million to Turn Businesses
with Workforces of Color into
Washington, D.C. | June 23, 2021 - Apis & Heritage Capital Partners (A&H) announced its First Close at $30 million for its flagship Legacy Fund I, which is designed to help close the country’s racial wealth gap by transitioning businesses with large workforces of color into 100% employee-owned enterprises.
The fund surpassed its $15 million first close target, with support from leading investors and advisors including the Ford Foundation, The Rockefeller Foundation’s Zero Gap Fund, The Skoll Foundation and its advisor Capricorn Investments, Gary Community Investments, Ascension Investment Management, and others.
A&H is a BIPOC-led private equity fund that has developed an “employee-led buyout” (ELBO) model that gives retiring owners a fair market price for their businesses, often with significant tax advantages, as employees become the employee/owners of the business with A&H’s assistance. In today’s America, 60% of Black and 65% of LatinX workers have $0 in retirement assets making workers vulnerable to financial insecurity as they age and without resources to pass on to the next generation. A&H expects an average worker who benefits from an A&H-assisted buyout to accrue retirement savings of $70,000 - $120,000 each, which can be life changing.
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"You don’t have to see the whole staircase, just take the first step."
– Martin Luther King, Jr.
A&H Headquarters is in Washington DC. A&H partners are based also in New York and San Francisco.
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