Second of four posts on Mission Related Investments (MRIs).
In December 2006, Yankee invested in its first MRI—an equity investment in Vermont Capital Partners. We committed to a $500,000 investment. To date only $400,000 has been called for.
Vermont Capital Partners is a joint venture between the Vermont Economic Development Authority (VEDA) and Brook Venture Partners, an investment company in the Boston area. Yankee has long worked closely with VEDA on farm loans, through VEDA's subsidiary the Vermont Agricultural Credit Corporation (VACC).
Here is the way Vermont Capital Partners works. A total of $4.75 million was raised, including $2 million from VEDA, our $500,000, and the rest from other Vermont investors. This $4.75 million was committed to Brook Venture Fund II, a venture capital fund managed by Brook Venture Partners. Total investments committed to Brook Venture Fund II are $32 million. In addition, Brook Venture Fund II is licensed as a Small Business Investment Company (SBIC) by the U.S. Small Business Administration (SBA), which means that it can borrow 2x its invested capital from the SBA on favorable terms. Altogether, therefore, Brook Venture Fund II has nearly $100 million available to invest.
Brook Venture Fund II seeks to invest in small companies throughout the Northeast and Mid-Atlantic states. It seeks to invest at least the amount of money raised from Vermont Capital Partners back into Vermont-based companies. As of 3/31/08, Brook Venture Fund II has invested $39 million in 11 companies, including two companies in Vermont for $6 million.
