Community Development Venture Capital Alliance

Key Personnel:
Esperanza Guerrero-Anderson, President and CEO
Judy Romlin, Vice-President Investments

Established: 1990

Total Committed Capital: $21 million without counting SBA leverage

Amount Invested: $19 million

Geographic Focus: Minnesota with a focus on Minneapolis and the Twin-Cities metro area.

Background
The Milestone Growth Fund makes equity, near-equity, and debt investments in ethnic minority businesses primarily located in the Twin Cities Metropolitan Area. Milestone Growth Fund began as a Small Business Investment Company (SBIC) in 1990 with $1.3 million of seed capital from a number of Minnesota-based foundations and corporations. The fund's goal is a permanent revolving investment fund that provides smaller amounts of long-term, high-risk, equity-type financing and management assistance to minority businesses.

Social Mission
The Fund's mission is to promote capital formation in minority businesses. Milestone's vision is to foster greater economic success for ethnic minorities in a more inclusive and prosperous society.

Investment Information
To date, Milestone has invested close to $19 million in 58 minority-owned and managed companies and has a current outstanding portfolio of over $7 million invested in 26 companies. Milestone's investment strategy focuses on early-stage companies located in the Twin Cities Metropolitan Area whose owners are committed to building successful businesses, and who bring prosperity to their communities and welcome Milestone's financing and management assistance. The Fund offers financing to minority businesses looking for $300,000 to $1 million. Milestone prefers to be the lead investor in most transactions, but will participate in larger syndicated investments to leverage staff, spread risk and improve return on investments. Milestone will also consider out-of-metro-area investments with strong partners. Average investments range from $300,000 to $500,000.