Why work with us?
Specialization
We invest exclusively in 501c3’s because we believe that the Non-Profit Investment space has its own idiosyncrasies, emotions, complications, and benefits. Collectively, our team’s professional experience is split almost 50/50 across nonprofit and for-profit organizations and we consider ourselves experts in this nascent field.
Process
A nonprofit asset purchase deal is complex and requires a unique set of steps, including the creation of a new entity, evaluation of fair market value, and an asset purchase agreement. Many nonprofits select to transition to a public benefit corporation, B Corp, and other mission-driven structures. Our extended team includes lawyers, accountants, and evaluators with explicit experience in the field.
Deal Terms
We’ll help you think through specific terms to ensure the new organization is mission-aligned. For example, one of our nonprofit clients maintained majority control of the new public benefit corporation. Another mandated that the new organization donate a selection of products to low income families. Our client is the nonprofit organization; we want to make sure that a change in organizational structure doesn’t impact your mission.
Investment Model
The traditional investment model is structured around a relatively quick exit, which creates specific incentives for investors and company leadership. We typically employ a revenue or dividend capital model (offering investors a percentage of revenue or profit each year). Our investors are looking for growing, profitable companies; exits are secondary.