Bank of America Invests in New Jersey “40 Acres and a Mule” (FAM) Fund Created to Fight Systemic Racism
First investment by Fortune 500 financial institution as NJ FAM Fund grows rapidly to now include eight NJ cities: Newark, Orange, East Orange, Paterson, Camden, Trenton, Irvington, Bridgeton and Atlantic City
Newark, NJ, May 27, 2021 (GLOBE NEWSWIRE) – The New Jersey “40 Acres and a Mule” Fund (NJ FAM) today announced that Bank of America has committed to invest in its NJ FAM fund. The fund is a $ 100 million private investment vehicle created in 2020 to reduce social and economic disparities resulting from systemic racism. The Bank of America engagement would be the fund’s first private equity investment by a Fortune 500 financial institution against a backdrop of strong and growing national interest in socially responsible investing.
Bank of America’s pledge will support the expansion of the NJ FAM fund, which puts capital directly into the hands of Black and Hispanic-Latino New Jersey business owners, who traditionally suffer from the greatest barriers to accessing the market. capital and other resources. This investment follows the bank’s previously announced commitment to invest $ 1.25 billion over five years to advance racial equality and economic opportunity in minority populations and its recent equity investment in focused funds. on minorities.
“A strong and vibrant business community benefits everyone,” said Alberto Garofalo, president of Bank of America New Jersey. “Our equity investment in NJ FAM is intended to deploy capital to black, Hispanic-Latino entrepreneurs, other under-represented and female-led minorities so that they can grow, expand employment opportunities and have a positive impact in their community. ”
Newark City Mayor Ras J. Baraka announced the innovative fund in September 2020. Next, due to a growing need to address social and economic inequalities resulting from systemic racism, as well as the urgent need to minority-owned businesses to access capital. From the pandemic, increased interest in the initiative led to its rapid expansion, now comprising eight New Jersey cities: Newark, Orange, East Orange, Paterson, Camden, Trenton, Irvington and Atlantic City.
“The NJ FAM Fund will help cities like Newark and other municipalities overcome the challenges caused by the racial wealth gap, and we are extremely grateful for the generous support of the Bank of America,” said the Mayor of Newark, Ras J. Baraka. of Newark has committed $ 2 million to the NJ FAM Fund. “
The NJ FAM Fund was established with the help of Nelson Mullins, one of the nation’s largest law firms in private equity fundraising, policy and legislative advocacy. Additional funding commitments come from companies and celebrities such as New Jersey Community Capital, AT&T, Panasonic, RWJ Barnabas Health and Shaquille O’Neal.
“The growth of the NJ FAM Fund and the participation of forward-thinking global investors like Bank of America is a testament to our timely focus on serving the needs of New Jersey businesses that have been underserved for too long,” said Bernel Hall, Managing Partner of the New Jersey FAM Fund. “We look forward to expanding this initiative as more partners join our efforts.”
About tNew Jersey 40 acres and a mule fund
The New Jersey Forty Acres and a Mule (FAM) Fund (the “Fund” or NJ “FAM Fund”) is a first-of-its-kind private equity vehicle focused on equity and debt investments in Black and Latinx companies. located or doing business in the State of New Jersey and transforming real estate projects within the Black and Latinx communities of New Jersey. The NJ FAM Fund intends to raise $ 100 million in investable capital to make opportunistic investments in value-added small businesses and real estate projects that will resize and reduce the wealth, health and social disparities that exist with black and Latin communities compared to the general population of the state of New Jersey. The Fund will raise capital through charitable contributions and investments from financial institutions and partner companies. The NJ FAM Fund will operate as a private investment vehicle with the help of broad public support. https://njfamfund.org/
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individuals, small and medium businesses, and large corporations with a full range of banking, investing, asset management and financial products and services. other financial and risk management products and services. The company provides unparalleled convenience in the United States, serving approximately 66 million personal and small business customers with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a financial solutions advisor for large investments public and around 2,400 business centers; around 17,000 ATMs; and the award-winning digital bank with around 40 million active users, including around 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving businesses, governments, institutions and individuals around the world. whole. Bank of America provides industry-leading support to approximately 3 million small business households through a suite of innovative and easy-to-use online products and services. The company serves its clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation (NYSE: BAC) stock is listed on the New York Stock Exchange.
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Jerry Dubrowski for Bank of America
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