WASHINGTON, October 4, 2019 – The Minority Business Development Agency
(MBDA) of the U.S. Department of Commerce and the National Association of
Investment Companies (NAIC), the largest network of diverse-owned private
equity firms and hedge funds, announced today that MBDA has awarded NAIC a $1.4
million grant to support a project that will facilitate the aggregation and
deployment of approximately $1 billion in growth capital into minority-owned businesses.
Access to capital
remains the most important factor limiting the ability of many of the nation’s 11
million minority- and women-owned business enterprises (MWBEs) to increase in
scale. The $1.4 milliongrant
demonstrates both a recognition of the obstacles faced by minority asset
managers and a prioritization towards addressing the many challenges faced by
MWBEs.
Through this
landmark MBDA grant, NAIC will launch the Minority Growth Equity Funds
Initiative, which aims to increase the amount of capital available for MWBEs
poised for growth. As a key goal of the initiative, NAIC will quantify the
demand for and current supply of capital focused on MWBEs, then leverage its extensive
expertise and broad network to attract and invest growth capital in innovative businesses
owned by women and ethnically diverse entrepreneurs. The outcome will empower
MWBEs to drive substantial job and wealth creation and to make a significant economic
impact in historically underserved communities and in the Nation.
“According to the U.S.
Census Bureau, the number of minority-owned small businesses in the U.S. is
growing much faster than the overall small business growth rate. But, despite
their growth rate, minority-owned firms are still having a much harder time
accessing capital,”says Henry Childs II, MBDA National Director.
“MBDA is committed to
getting more minority-owned businesses growth capital through forward-thinking
investments like the Minority Growth
Equity Fund initiative.”
“The importance of minority-owned businesses to our nation’s
economy cannot be overstated, but the entrepreneurs who run them are often overlooked
in the growth equity market, substantially limiting their ability to scale,”
says Robert L. Greene, President and CEO of the NAIC. “With the support of the
MBDA and the efforts of our member firms and others, the Minority Growth
Equity Funds initiative will help position many of these businesses for enhanced
contribution to the American economy of the future.”
About
the MBDA: The U.S. Department of Commerce, Minority Business Development
Agency (www.mbda.gov) is the only federal
agency solely dedicated to fostering the growth and global competitiveness of
U.S. minority business enterprises. In 2019, MBDA commemorates 50 years of
economic empowerment through programs that better equip entrepreneurs to create
jobs, build scale and capacity, and expand into new markets.
About the NAIC: Based in
Washington, DC, the National Association of Investment Companies (www.naicpe.com)
was founded in 1971. Comprised of 75 member firms representing over $150
billion of assets under management, it is the largest network of diverse-owned
private equity firms and hedge funds in the United States.
MEDIA CONTACTS:
FOR MBDA:
Velicia D. Woods
202-482-6772
FOR NAIC:
Alan Hughes