Investing in American Emerging Markets

Industry

Holding Company Structure

Company Type

Minority Business Enterprises (MBEs)

Location

US

Size

+/- $500 million

Investment Type

Equity

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Helping Great Companies Grow

Overview

  • FGP Companies (FGP) is raising $500 million of equity to acquire and grow scalable diversity-driven companies with strong management teams
  • Target markets: businesses serving fast-growing ethnic markets; businesses owned by ethnic minorities; businesses geographically located near ethnic minorities
  • FGP refers to these target markets as “American Emerging Markets,” which represent a very attractive investment opportunity due to capital inefficiencies, shifting demographics and increased focus on supplier diversity by Fortune 500 companies
  • FGP expects to work with Fortune 500 companies to identify and invest in proven minority-owned suppliers that need capital to scale and service their blue-chip clients
  • Founded in 2009, FGP has been advising Minority Businesses Enterprises (MBEs) on raising capital, mergers & acquisitions, and advising Fortune 500 companies to increase their supplier diversity efforts
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Helping Great Companies Grow

Opportunity

  • Minority Business Enterprises (MBEs) have been underserved when it comes to investors/investments
  • MBEs have long faced challenges when getting financing
  • In 2018, only 31% of Black-owned businesses received all the funding they applied for, compared with 49% of white-owned businesses, according to a 2019 from the Federal Reserve Bank of Atlanta
  • In particular, Black-owned businesses were more likely to be in industries hit hard by coronavirus-related restrictions, such as retail and hospitality, according to a study by the Economic Policy Institute, a labor-oriented think tank

 

  • FGP has identified a pipeline of over $1 billion of diversity-driven investment opportunities targeting American Emerging Markets, MBEs serving Fortune 500 companies and general market businesses that FGP can convert to MBEs
  • American Emerging Markets are expected to account for significant growth in the US business landscape
  • Scalable MBEs have historically not had the same access to capital and expertise as the general market
  • According to the U.S. Census Bureau, ethnic minorities represent 97% of future US population growth, equivalent to 124 of 129 million new Americans between 2010 and 2050
  • Minorities represent an emerging market investment opportunity inside the USA, with no currency or country risk and a long-term, growth engine to any business strategy
  • FGP management believes that scalable MBE investments will generate above average risk adjusted returns
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Helping Great Companies Grow

Solution/Strategy

  • MBEs need two things: long-term capital and strategic partnerships
  • Fort Greene Partners is a long-term, values-aligned partner with permanent capital, business building expertise and an extensive network from Wall Street to Main Street to Silicon Valley
  • FGP enables founders, entrepreneurs and leaders to focus on their business strategy, long-term impact, and building exceptional companies
  • FGP avoids the pitfalls of short-termism, cost, inefficiency and distraction of being sold, and missed opportunities to grow the business
  • Senior-level executives in Fortune 500 supply-chain will provide insight and expertise to support FGP’s investment thesis
Helping Great Companies Grow

Management

Richard A. Wayner

Managing Partner/ Founder

  • Former Goldman Sachs M&A banker and CEO of two minority-owned businesses
  • Founded Fort Greene Partners LLC in 2009 to advise minority owned businesses and Fortune 500 companies seeking to expand their supplier diversity efforts
  • Clients have included Beneficial Life, BET/Viacom, FIS Group, Genesis Companies, Goldman Sachs and TIAA-CREF
  • Over 25 years in finance and diversity. Co-Founder and Chairman of Alliance TRACE Media (Netherlands); Co-Founder and CEO of The TRUE Agency; Vice President, Goldman Sachs & Co. (M&A, real estate, TMT); original member of the Urban Investment Group (UIG)
  • Member of the French-American Foundation and the Board of Trustees of The Buckley School
  • Graduated from Harvard University (BA, History and Economics, cum laude), Stanford University Graduate School of Business (MBA) and Institut d’Etudes Politiques (Paris-European Community Program)

Nigel W. Jones

Managing Partner/Founder

  • Former Goldman Sachs and Carlyle Group executive and CEO of a cybersecurity and mobile security company
  • Over 23 years of experience in finance and operations
  • CEO of KoolSpan; Partner, TWJ Capital; former Principal, The Carlyle Group (U.S. Buyout Funds); former Associate, Goldman Sachs & Co. in M&A and original member of the Technology Group
  • Adjunct Director of the Marine Corps Scholarship Foundation (Finance Committee)
  • Graduated from Harvard University (BA, History, magna cum laude) and Stanford University Graduate School of Business (MBA)
  • Served as an officer in the U.S. Marine Corps for four years active duty and four years in the reserves
  • Graduate of the Marines Combatant Dive School, US Army Airborne School, Honor Grad Marine Communications Officer School and Communications Platoon Leader First Force Reconnaissance Company
Helping Great Companies Grow
Learn More About This Transaction

CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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