Black Opportunity Fund Launches $150M Initiative To Support Black-Business Owners And Aspiring Homeowners
The Black Opportunity Fund (BOF), a community-led charity in Toronto, Canada, has announced the launch of BOF Capital.
The initiative has two primary fundraising objectives: a $100 million private equity growth fund to support Black-owned businesses and a $50 million shared equity housing fund to help Black Canadians get on the property ladder, according to a press release.
“We are creating innovative and sustainable pathways to economic empowerment by directly addressing the funding and opportunity gaps that have historically limited Black Canadians and those across the diaspora from building generational wealth,” Craig Wellington, CEO of BOF, said.
What is BOF?
BOF is a Canadian community-led organization that challenges anti-Black racism in two ways: by responding to long-existing underinvestment in Black communities and by working across the nation to strengthen collective actions by Black organizations and leaders. The initiative was formed in 2020 as a broader response to the murder of George Floyd, according to The Globe and Mail.
BOF capital supports Black businesses and aspiring homeowners
Systemic barriers persist, hindering wealth creation for Black entrepreneurs and aspiring homeowners. Black-owned businesses receive less than 1% of total growth capital, according to a report by the Alliance for Entrepreneurial Equity. The BOF capital aims to challenge these statistics.
The initiative includes a $100 million private equity growth fund and a $50 million shared equity housing fund. “We know where we are going for that first $ 150 million, and now what we are doing is bringing them in and having conversations with those anchor investors to get everything papered and do the due diligence,” Wellington told The Globe and Mail.
He did not disclose the name of any potential investors. However, BOF Capital announced the appointment of Gajan Kulasingam as its Managing Partner. Mr. Kulasingam is a seasoned finance executive with extensive experience in impact investing and economic development.
“I am honoured to have the privilege to lead BOF Capital. We know that access to funding has long been a barrier for Black entrepreneurs, limiting opportunities for growth and success,” Kulasingam said.
Image: DUANE COLE/The Globe and Mail
