|
| |
Small Firm
Expansion Capital Funds
Economic
Innovation pioneered the design and implementation of small firm expansion
capital funds, commonly known as mezzanine capital funds that today have more
than $1 billion under management. Following is a comprehensive list of
funds designed by the firm, through a capital markets analysis and business plan
then capitalized by institutional investors to create self-sustaining funds that
invest in small and medium sized businesses throughout the country.
The National
Association of Seed and Venture Capital Funds represents the professionals essential to the success of these
funds.
The Alpha Paradigm Fund:
Massachusetts
Capital Resource Corporation
(1977)
 |
The $100 million MCRC was initiated by the
Commonwealth of Massachusetts, designed by Economic Innovation, and
capitalized, owned and managed by the Massachusetts Life Insurance Industry in
1977. |
|
In its 25 years, MCRC has reinvested its
capital more than five times, produced a substantial low teens-high 20s IRR
for its insurance company investors, financed more than $500 million of small
business expansion capital in more than 275 firms and generated over 15,000
new jobs in the Commonwealth of Massachusetts. |
|
In addition, MCRC has invested more than $300
million in disadvantaged communities of Massachusetts, triggered the turnaround of hundreds of mature firms in shoes, leather, textiles, paper, jewelry
and fish processing that would have otherwise left Massachusetts, first, for
lower cost manufacturing sites in North America, and eventually, overseas.
Instead, these are now thriving, high growth, technology-based firms producing
high value jobs in Massachusetts. |
|
Finally, the
success of MCRC led to the creation of the $100 million, triple bottom
line Massachusetts Life Initiative, which has the same
insurance company investors, and invests only in low income
neighborhoods in partnership with community stakeholders. Like the 25 year
old parent MCRC, the five year old Life Initiative has already successfully
invested its first $100 million, and is now beginning to reinvest its corpus a
second time. |
Similar Beta Funds
|
Economic Innovation International, Inc.