About the Fund
Exelon launched a Racial Equity Capital Fund (RECF),in partnership with theExelon Foundation,to expand access to capital to minority businesses so they can create more jobs, grow their companies, and reinvest in their neighborhoods and communities. The fund builds on Exelon’s longstanding history of supporting the underserved and under-resourced communities and further delivers on Exelon's commitmentto drive economic equity and opportunity for Exelon's communities.
The capital fund is part of Exelon’s ongoing, extensive efforts to promote equity and economic opportunity in the diverse communities served by the six Exelon utilities,which include Atlantic City Electric (ACE), BGE, ComEd, Delmarva Power (DPL), PECO and Pepco. Exelon and the Exelon Foundation have a rich history of supportingunderserved and under-resourced communities.
Interested businesses can access the application and instructions are listed below.
Purpose of the RECF
The Racial Equity Capital Fund was created to strengthen communities and help minority businesses grow by:
- Providing affordable capital to minority-owned businesses and businesses in underserved and under-resourced communities that may have had challenges accessing and securing funding.
- Increasing minority business capacity and subsequent employment opportunities for diverse local communities.
- Utilizing the expertise of the fund manager, RockCreek, a diverse-owned firm with > 75% diverse ownership and management team diversity – to make investment decisions.
- Developing partnerships with minority community banks, other key local financial or community organizations. RockCreek will grow the capability of the capital fund to provide additional investment and lending opportunities.
The capital fund is expected to invest in numerous businesses throughout Exelon’s service areas over the next three years with estimated loan amounts between $100,000 and $300,000 and equity investments of nearly $1 million.
Exelon and the Exelon Foundation created a $36M fund to support minority-owned businesses in the communities it serves
In 2021, Exelon spent $2.9B with diversity-certified suppliers.
Exelon donated more than $164M to organizations with a focus on diversity, equity and inclusion efforts over the past five years
In 2021, Exelon’s utilities spent more than $14M on workforce development.
How the fund works
Exelon and the Exelon Foundation invested $36 million in a newly established Racial Equity Capital Fund, managed by RockCreek, a leading global investment firm, to support minority-owned businesses. As the fund manager, RockCreek is responsible for selecting the small minority businesses (e.g. $500k - $10M EBITDA) with debt investments up to $300K and equity investments up to$1M that are located in ACE, BGE, ComEd, DPL, PECO and Pepco territories.
Founded in 2003, founder and CEO Afsaneh Mashayekhi Beschloss built an investment-management firm that nurtures a dynamic, diverse team with a global perspective to generate innovative solutions for institutional investors.
RockCreek’s innovative team, manages more than $16 billion and has roots in leading investment, non-profit, academic, and technology firms, bringing a deep understand of global markets to investment decisions.
Investing across all asset classes, RockCreek believes that integrating inclusion and sustainability from the very beginning is the best way to generate long-term value.
RockCreek will manage the originations and underwriting decisions to determine who gets financial investments from the Racial Equity Capital Fund. RockCreek will evaluate potential fund co-investors that are aligned with the purpose of the fund.
Businesses in ACE, BGE, ComEd, DPL, PECO and Pepco territories will be evaluated primarily on their ability to grow minority business capacity and create jobs, as well as their ability to repay the investment.
August 02, 2021Pepco Proposes Energy Efficiency Programs to Help Residential and Business Customers Save Money and Support the District’s Leading Climate Goals
June 09, 2021Exelon Foundation and Exelon Corp. Name Selected Startups in Second Round of Climate Change Investment Initiative
July 16, 2019Exelon Invests $5 Million to Bring Washington, D.C. Communities Together
October 27, 2021Exelon Announces $36 Million Equity Fund to Support Minority-Owned Business Growth
May 04, 2022Exelon-Funded $36 Million Racial Equity Capital Fund, Administered By RockCreek, Accepting Applications From Minority-Owned Businesses In Service Areas