Apis & Heritage Capital Partners (A&H), a middle-market mezzanine debt firm with the mission of closing the racial wealth gap using employee ownership, has released its first annual impact report, highlighting some of the successes of its initial Legacy Fund I. A&H saw its first fund oversubscribed by investors and foundations, exceeding its initial $50 million cap by over $8 million. This fund will help A&H further its mission of converting businesses that primarily employ workers of color to employee ownership.
To that end, the report also highlighted some initial successes in doing just that, with a spotlight on two companies that A&H has converted to employee ownership: Apex Plumbing in Arvada, Colorado, and Accent Plumbing in El Paso, Texas. These two businesses, both family-owned and searching for liquidity options before A&H's intervention, combined employ over 80% workers of color and 85% low- and moderate-income workers, and are now both 100% employee-owned.
The report also highlighted the intentionality with which these companies are being brought into the employee ownership fold. Alongside Melissa Hoover and our friends at the Democracy at Work Institute, the companies are being onboarded with an Ownership Culture Roadmap and Toolkit, which includes best practices and guidance for each company on engagement, education, and well-being for employees.
Earlier this year, I had the great pleasure of being invited by A&H cofounder and NCEO board member Todd Leverette to address A&H's Legacy Fund I investors. The NCEO and I are proud to support A&H and look forward to what comes next for this important project.