The Foundation for Business Equity (“FBE”), a Boston-based nonprofit organization working to close the racial wealth gap, today announced a five year, $2.5 million commitment from Bain Capital, one of the world’s leading multi-asset alternative investment firms. As part of the partnership, Bain Capital will provide philanthropic support to FBE to help expand its business accelerator program, allocate more capital to support the growth of businesses, and deepen the strategic advisory, technical and operational assistance it provides to Black and Latinx business owners. In addition to funding, volunteers from Bain Capital will offer one-on-one expertise directly to entrepreneurs taking part in the program.
FBE focuses on building collaborative ecosystems and programs to dismantle structural barriers for Black and Latinx businesses by providing capacity, capital and connections to grow revenues, drive job growth and build wealth. Founded in 2017, FBE has supported more than 60 businesses across the Greater Boston area, with the most recent businesses receiving COVID-19 response support.
“This first-of-its kind support from Bain Capital will provide critical resources to help us accelerate our mission of supporting Black and Latinx businesses at a time when so many of them are facing daunting challenges,” said Glynn Lloyd, Executive Director of the Foundation for Business Equity. “In addition to their financial commitment, which will allow us to expand our reach to more businesses, Bain Capital brings unique business-building experience to the table that will have a tangible, day-to-day impact for entrepreneurs, helping them thrive and become anchors of wealth and job creation.”
Research by the Federal Reserve Bank of Boston, Duke University and The New School has shown a stark racial wealth gap in the Boston area, while local Black and Latinx communities also lag Whites in the rate of business ownership and average annual receipts, according to the National Equity Atlas.
“FBE has an outstanding track record and proven approach that brings together capital, advice and networking,” said Saron Tesfalul, a Principal of Bain Capital and incoming FBE Board member. “Bain Capital made a commitment to create economic development opportunities for underrepresented business owners in our region. We strongly believe that inclusive entrepreneurship is the key to addressing the longstanding racial wealth gap and are excited about working with FBE over the next several years to drive lasting change.”
FBE’s program focuses on matching Black and Latinx business owners and entrepreneurs with experienced strategic advisors and specialists to develop and implement strategic growth plans. Advisors work with participating enterprises for up to 12 months to implement the goals outlined in their plans. In addition, the program provides support to access growth capital and networking to expand business contacts and contracts.
Source: Bain Capital
