Bank of America, the Consumers Energy Foundation and The Rig
GRAND RAPIDS, Mich., Jan. 23, 2020 /PRNewswire/ -- Leaders at Bank of America, the Consumers Energy Foundation, and The Right Place, Inc. will be developing the New Community Transformation Fund. This will be an investment fund based in Grand Rapids, Michigan to support diverse business owners. The fund aims to increase ethnic and racial diversity in business ownership in West Michigan. In addition, it will focus on businesses that intend to provide multi-generational wealth creation within historically disadvantaged groups.
Bank of America and the Consumers Energy Foundation have each provided $200,000 in initial startup capital. These funds will support the design and development of the fund, including creation of the fund's legal structure and operational systems, and establishment of a management team, advisors, a board of directors, and securing local and national portfolio growth partners.
An experienced consulting team will lead design and development of the fund:
"West Michigan has one of the strongest performing economies in the nation," said Birgit Klohs, President and CEO, The Right Place, Inc. "Yet, this economic growth has not been shared by all members of our community. By investing in companies that will create long-term economic prosperity in communities of color, this fund will increase upward mobility and ultimately build a more diverse and globally competitive economy."
The fund will focus on scalable early to mid-stage businesses and transitioning succession companies in the industries of advanced manufacturing, food processing and agribusiness, life sciences and medical devices, and information technology. This fund will invest in both current and prospective West Michigan companies, but will require founders and portfolio companies to locate and operate in West Michigan.
"The goal of this fund is to increase ethnic and racial diversity in Grand Rapids' business ownership," said Renee Tabben, Grand Rapids Market President, Bank of America, who sits on the Board of The Right Place, Inc. "Bank of America strives to help local economies prosper and one way we do that is by supporting business ownership to create sustainable, financially healthy and diverse communities."
"While the West Michigan economy is booming, communities of color have not shared fully in our region's success," said Garrick Rochow, Executive Vice President of Operations for Consumers Energy and a member of The Right Place, Inc. Board's Executive Committee. "In order to truly 'win' as a West Michigan community, our success must be collective. And to do that, we must go beyond talking about our good intentions and take action."
In 2020 the fund consultant team will focus on the design and development of the fund, including the goal of raising $15-$25 million in capital. The team will primarily be seeking family offices, institutional investors, and corporate partners. The fund is aiming to launch in 2021.
About Bank of America
At Bank of America, we're guided by a common purpose to help make financial lives better, through the power of every connection. We're delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It's demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).
About The Consumers Energy Foundation
The Consumers Energy Foundation is Consumers Energy's charitable arm. The foundation supports community efforts across Michigan's Lower Peninsula, ensuring that residents have access to world-class cultural, natural and educational resources.
In 2019, the Consumers Energy Foundation, Consumers Energy, its employees and retirees contributed more than $11.5 million to Michigan nonprofits. For more information, visit www.ConsumersEnergy.com/foundation.
About The Right Place, Inc.
The Right Place, Inc., is a regional nonprofit founded in 1985 and supported through investments from the private and public sector. The Right Place drives current and long-term economic prosperity in West Michigan through the development and implementation of comprehensive strategies to retain, expand, and attract businesses. This includes connecting area businesses to national and international resources, identifying emerging growth opportunities, strengthening the competitiveness of area firms, and marketing the region globally. The International Economic Development Council has designated The Right Place as an Accredited Economic Development Organization (AEDO). Find out more by visiting www.rightplace.org, liking us on facebook.com, and following us on twitter @TheRightPlaceGR.
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SOURCE Consumers Energy