New Majority Capital

New Majority Capital is a private equity firm dedicated to closing persistent wealth gaps in the United States by supporting underrepresented entrepreneurs in acquiring and scaling small businesses. The firm operates with a dual mandate: delivering value to limited partners while expanding ownership in low-to-moderate income communities. Their approach includes providing non-extractive capital and educational resources to facilitate business acquisitions.

The firm's investment strategy centers on acquiring profitable, cash-flowing small businesses, particularly those owned by retiring baby boomers—a phenomenon often referred to as the 'Silver Tsunami.' By focusing on businesses with an EBITDA between $500,000 and $2 million, New Majority Capital targets companies that are typically too small for traditional private equity interest, offering strong opportunities for growth and improvement in cash flows. This strategy enables the firm to distribute cash flows back to investors early in the life of the fund.

New Majority Capital's impact is evident in its portfolio, which includes nine acquisitions with a total capital deployment of $1.69 million. Notably, 68% of these acquisitions qualify as low-to-moderate income (LMI) businesses, with a projected $25 million in wealth generation from the current portfolio. The firm's commitment to inclusivity and non-extractive practices has attracted partnerships with organizations like the Skoll Foundation, which contributed to the first close of NMC Fund I, underscoring the firm's potential to significantly impact underrepresented entrepreneurs and the employees in their acquired businesses who benefit from profit-sharing programs.