Capital Aggregation

Capital Aggregation

Capital aggregation is a form of coordinated, collaborative investment amassing private resources and uniting grantees and philanthropists behind the common goal of expanding evidence-based programs to maximize impact while ensuring quality.

EMCF pioneered capital aggregation in the social sector and made it integral to the Foundation's investing approach. Now Blue Meridian Partners, a philanthropic partnership that EMCF incubated and in which it remains a national General Partner, is advancing this to a higher level of capitalization and collaboration as it seeks to transform the life trajectories of America's children and youth living in poverty.

EMCF's staff and operations have transitioned to Blue Meridian Partners, Inc. while this newly independent organization embarks on a second phase of growth.

Capital aggregation is core component of the performance-based investing approach developed by EMCF. We believe it holds great promise for disadvantaged youth and great advantages for the investors and nonprofits who champion them, as well as for the social sector and philanthropy more generally.

Key elements of capital aggregation: 

  • It provides upfront all the growth capital an effective nonprofit needs to fully fund its business plan with confidence.
  • A single set of investment terms and reporting requirements unites grantees and funders behind common objectives, and creates greater efficiency by reducing the burden of reporting to multiple investors.
  • Grantees holds themselves accountable to perform milestones on which annual payout of the investment is contingent.
  • Aggregated resources produce greater impact than any one funder could achieve individually.

From 2007 to 2017, EMCF leveraged $155 million of its 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 encouraged 11 other co-investors to commit an additional $650 million to Blue Meridian. From 2017 to 2019, Blue Meridian Partners raised more funds to bring its cumulative committed capital to over $1.7 billion.

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