Wal-Mart sets private equity fund for women & minority-owned business growth
24 Oct '05
3 min read
World largest retailer Wal-Mart Stores Inc announced that it would invest $25 million to establish a private equity fund that will directly issue equity investments in women and minority-owned business enterprises. Wal-Mart unveiled the new fund at the 2005 National Association of Investment Companies (NAIC) conference in San Diego.
The co-investment management fund, which will have an allocation life of five years, will be managed by Dallas-based Aldus Equity to provide equity capital to women and minority- owned business enterprises seeking capital for acquisitions, joint ventures and other growth and expansion initiatives. Prospective investment candidates must either operate companies or be in the process of acquiring companies that distribute or have the capacity to distribute products and services to major retailers.
The National Minority Supplier Development Council (NMSDC) and the Women's Business Enterprise National Council (WBENC) must also certify investment candidates as minority or women-owned or minority-controlled businesses as defined.
According to NAIC, although minorities account for 30 percent of the U.S. population, less than 2 percent of all venture and private equity funds are invested in minority companies.
"Even though small businesses are one of the fastest growing sectors of the economy, access to capital remains a key barrier to growth for women and minority-owned businesses," said Jay Fitzsimmons, Senior Vice Presidentof finance and treasurer, Wal-Mart Stores Inc "By creating this fund will to help fill a significant void and can have a positive impact on those businesses that are ready and able to move to that next level of national and international distribution for retailers."
marketing@alchempro.com
