Advantage Capital established the fund to close the wealth gap that exists for minorities.
Whether homes or businesses, blacks and other minority Americans struggle to gain ownership—that is critical for attaining wealth and financial security. In the wake of the George Floyd tragedy in 2020, corporations and institutions chose to address this core challenge that underrepresented communities face.
Investment Advisor Advantage Capital established the Empower the Change Fund in 2021. The Fund’s mission is to give minority entrepreneurs and minority-owned business enterprises access to capital. Just recently, the Fund made its first investment of $7.5 million in support of two minority investors and entrepreneurs, Tannis Fussell of Ascentria Capital and James Collins of Eastwood Capital.
With this outside assistance the two were able to acquire a controlling stake in the long-haul trucking company, General Trucking based in Warren, Michigan. The company was founded in 2006 by Irman Islamovic and Emil Jakupovic who will remain involved in the company’s operations and management.
“We have been working tirelessly to reach this momentous milestone, and I am pleased to see this fund support such a strong business right out of the gate. Empower the Change is designed at its core to support MBEs with flexible financing solutions to support growth and create wealth in minority communities,” stated Sandra M. Moore, Chief Impact Officer and Managing Director, Advantage Capital.
The acquisition aligns with Fussell’s and Collins’ financial backgrounds. Both founded an investment firm and previously held prominent corporate finance-related positions.
Fussell is Founder and Managing Partner of Ascentria Capital Partners that specializes in buyouts, growth, and income generating transactions across industries. Prior to founding Ascentria, Fussell was a senior executive at PGIM, Prudential’s global investment management group.
Collins is the founding Partner of Eastwood Capital that he established in 2012 by investing his own money and raising funds on a deal-by-deal basis. This followed positions with Roark Capital and Bain & Company.
Together and with other key partners, the acquisition was made possible—serving to encourage those in underrepresented groups. Fussell and Collins foresee that the Fund’s limited partner base and its relationship with the NMSDC Business Consortium Fund (BCF), a dedicated lender to people of color, will result in other business development opportunities that are of similar quality of the General Trucking deal.
“This financing provided strong support in our efforts to acquire a controlling stake in General Trucking. The company has a significant revenue base and approximately $10 million of operating profit. The Empower the Change Fund worked to help us arrange our new senior debt partners while providing the junior capital needed to complete the transaction,” said partners Fussell and Collins.
A number of parties coalesced around Fussell and Collins to make this opportunity happen. Access to capital remains at the top of every entrepreneur’s and business owner’s needs, something that Advantage Capital’s Empower the Change Fund and the other transaction partners are committed to providing to minority entrepreneurs.
“We know that targeted investing works—we’ve been doing it for 30 years,” said Brian Anderson, Principal and Empower the Change Investment lead at Advantage Capital. “With this first investment through Empower the Change we are providing capital to proven and talented investors and entrepreneurs who are acquiring a business with significant existing scale and attractive growth potential.”
