Benzinga | Aug 26, 2021 03:20PM EDT

Western Alliance Reports Finalization Of $9M Investment In FVLCRUM Fund

Western Alliance Bancorporation (NYSE:WAL), today announced a $9 million investment in FVLCRUM Fund. Developed by Clearinghouse CDFI, the fund targets raising $250 million to invest as a combination of equity and debt capital into proven, high-growth minority-owned enterprises.

"FVLCRUM's powerful mission of fostering wealth creation by helping minority-owned businesses succeed makes great sense to us at Western Alliance Bank," said Dale Gibbons, Chief Financial Officer, Western Alliance Bank. "This investment aligns with our commitment to serving our communities and our ESG goals. We're proud to partner with FVLCRUM Fund."

The new private equity fund was established in 2020 to invest in lower middle market, minority-owned companies in the United States, principally in government contracting, healthcare and franchising sectors. FVLCRUM will provide a range of financial structures, including equity financing, mezzanine and venture capital as well as debt, to support selected enterprises.

A key goal for FVLCRUM is to create $10 million of new net worth for the minority owners of a business following the fund's investment.

Developed in concert with the Minority Wealth Commission, FVLCRUM is endorsed by the Aspen Institute, U.S. Minority Chambers of Commerce, National Urban League and the National Minority Supplier Development Council, among others.

Western Alliance Bank received regulatory approval from the Federal Reserve for its investment in FVLCRUM Fund as a public welfare investment.