LOS ANGELES, Jan. 27, 2022 /PRNewswire/ -- The 22 Fund, a Los Angeles-based early stage growth equity fund, announced that Bank of America and Roy and Patricia Disney Family Foundation (RPDFF) have committed to the The 22 Fund I, LP (The 22). The 22, created in 2018 to be a $100 million vehicle making equity, debt and revenue share investments, provides capital into promising technology-based, export-oriented manufacturing firms led by women and Black, Indigenous and People of Color (BIPOC) entrepreneurs that are often left out of tech capital opportunities.
The 22's mission is to help create high-wage jobs and economic prosperity to low-and moderate-income communities through its strategic investments into growing BIPOC-founded companies. Named after the 22 Pobladores, the men and women of color who founded Los Angeles, The 22 Fund honors these founders for their diversity, tenacity, ingenuity, and productivity. Its focus on US high-tech manufacturing companies that have the potential for fast growth and high profitability through international sales (exports) is a first of its kind strategy that offers portfolio diversification to investors looking for real impact without concessions within the high-performing private equity asset class.
"The 22's interests are aligned with our investors – commercially, environmentally, socially and ethically. Our investors understand and appreciate the new, holistic models in venture capital and private equity that can address the important issues of this decisive decade," states Tracy Gray, Founder and Managing Partner of The 22 Fund. "The 22 knows we need a sense of urgency to address these issues. We are pioneers in realizing the opportunities of investing in diverse leaders in clean, high-growth domestic manufacturing to create jobs in the USA."
"Bank of America's equity investment into The 22 Fund underscores our ongoing efforts to address the persistent gap in access to growth capital for women- and minority-led businesses. Being based in Los Angeles, one of the most ethnically-and industry-diverse markets in the world, The 22 Fund is well positioned to help more minority entrepreneurs scale their business ideas, which will ultimately create more jobs and economic opportunities across Southern California and the country," said Raul A. Anaya, Head of Bank of America Business Banking and President for Greater Los Angeles.
"The status quo will not move the needle and decisive action is needed to address long standing systemic inequalities. The 22 Fund's focus and mission brings an attractive element to our portfolio to solve some of the serious problems the country is facing," said Shawn Escoffery, CEO of Roy and Patricia Disney Family Foundation.
The 22 Fund is making domestic manufacturing an attractive investment sector again. For several decades, US companies have been outsourcing manufacturing jobs due to cheap labor overseas. However, underlying systemic changes in global business and trade, consumer demand, supply chain shortages and improvements in processes, materials and technologies make cheap labor no longer a key factor in the cost competitiveness of a company.
About The 22 Fund
The 22 Fund invests in tech-based, US manufacturing companies to increase international sales (exports) and create the clean, quality jobs of the future in underserved and low-and moderate-income (LMI) communities. The 22 intentionally invests in women-and BIPOC-led firms to deliver both high ROI and high social/economic impact without concession or trade-offs.
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 Roy and Patricia Family Foundation
The Roy and Patricia Disney Family Foundation (RPDFF)'s mission is to invest in innovative solutions and community leaders to build a more just, equitable, and sustainable world in which all people thrive. We view our philanthropic investments through multiple lenses: human rights, civil rights, economic and environmental justice, gender and racial equity. Our actions are guided by a deep respect for every person's sense of dignity and self-defined identity. We aim to disrupt the status quo, act as a validator of new and compelling ideas, and serve as advocates for, and leaders within our priority areas. With an endowment, exceeding $160 million and an annual $6-7 million grantmaking budget, RPDFF strives to understand and invest in on-the-ground solutions driven by experts – individuals and advocacy groups living and working in the communities they serve. The Foundation elevates organizations and ideas that address pre-existing and reinforcing conditions that lead to inequities. The Foundation is also committed to increasingly moving more of its endowment capital towards impact. Over the next several years, the foundation will invest with both a racial and gender equity lens while also exploring ESG issues and alternative forms of capital.
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SOURCE The 22 Fund