Macellum forms company to invest in black and minority businesses – WWD

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The new company, called Macellum Private Capital, is targeting $100-150 million for its inaugural fund and will hire investors and operators.

The company receives initial support through strategic partnerships with Bob Johnson, founder of BET (Black Entertainment Television) and The RLJ Cos.; G-III Apparel Group and retailer Citi Trends, which focuses on black and Hispanic consumers. Some of the seed money will also come from Macellum Capital.

MPC is led by Daniel Balzora, an investor with 20 years of private equity/growth capital, investment banking/M&A and operational experience at TZP Group, Pouschine Cook Capital, Jefferies & Co. and General Mills .

“Businesses and consumers are increasingly demanding products and services from these companies, creating a more than $1 trillion opportunity in an underserved and underrepresented market that has encountered systematic downsides at scale and which traditionally lacks access to significant capital, strategic and operational resources and deep networks,” Macellum said in a statement.

“Macellum Private Capital’s mission is to fill these gaps and generate positive financial outcomes for its portfolio companies that help improve the economic prospects and social mobility of diverse communities while delivering strong returns to its investors.”

MPC will consider taking stakes in multi-unit retailers, e-commerce, health and beauty, apparel, food, home goods and experiential businesses. MPC will also consider commercial and industrial service companies that are suppliers to large organizations.

The new company targets U.S. companies offering “unique and differentiated product services that reach significant markets, multi-channel distribution opportunities, and have already established a ‘proof of concept’ and generate more than $5 million in annual revenue. They must also have a flexible capital structure; Macellum could be the sole controlling investor or a co-investor.

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