Capital Aggregation

Capital Aggregation

Growth capital aggregation is a form of coordinated, collaborative investment that amasses private resources and unites grantees and philanthropists behind the goal of expanding evidence-based programs while ensuring their quality. 

Since 2007, EMCF has pioneered growth capital aggregation and made it integral to our investment approach. Blue Meridian Partners, a consortium of 12 co-investors formed in 2016, is advancing this to a higher level of capitalization and collaboration.

Although many of its features are not without precedent, we believe their combination is unusual and holds great promise for disadvantaged youth and great advantages for the investors and nonprofits who champion them. We also hope it offers philanthropy and public policy a model for channeling capital more effectively to scale programs that work. 

Key elements of capital aggregation: 

  • Provides upfront all the capital an effective nonprofit needs to fully fund its growth plan with confidence;
  • A single set of investment terms and reporting requirements that unites grantees and funders behind common objectives, and reduces the burden of reporting to multiple investors;
  • Performance milestones for which a grantee holds itself accountable, and on which payout is contingent; and
  • Greater impact through aggregated resources than any one funder could achieve by operating individually.

EMCF currently supports capital aggregation on behalf of a portfolio of grantees through Blue Meridian Partners, and participates in an aggregated investment in a single grantee, Harlem Children’s Zone, a comprehensive set of programs extending from the cradle through college that provide a safe learning environment and positive opportunities for children and families in 97 blocks of New York’s Central Harlem.

Since 2007, EMCF has leveraged $155 million of our own resources to help 16 grantees secure nearly $487 million in additional private and public funding. Its commitment in 2016 of $200 million to launch Blue Meridian Partners has encouraged 11 other individual and institutional co-investors to commit, to date, an additional $650 million to Blue Meridian, which plans to invest at least $1 billion in propelling effective programs for children and youth to national scale and impact. 

To learn more about the origins and evolution of capital aggregation, see Growth Capital Aggregation Pilot and True North Fund.