East Chop Capital has closed its funding and will deploy capital to Black investors.
According to a press release provided to AFROTECH™, the private equity firm’s founders and HBCU graduates Calvin L. Butts Jr. and Carrington Carter have closed an $11 million fund, which draws equity investments from 93 limited partnerships, including Liberty Financial Services.
This brings East Chop Capital’s total raise to $15 million.
As previously reported by AFROTECH™, $4 million in 2021 had been raised to support its presence in the global vacation market, which is projected to reach $132.7 billion in 2033, as reported by Future Market Insight. East Chop Capital is poised to achieve a 25% return, taking into consideration the fees or expenses involved in overseeing the fund.
With additional capital at its disposal, East Chop Capital is poised to amplify its efforts in the initial round, with plans already set in motion to invest in Florida and Texas.
“Fund II is about scale and pattern recognition as we invest in undiscovered, overlooked/undervalued, or value-add vacation rental homes and developments across the United States. We’re pleased to already be putting this capital to work in Florida and Texas,” Carter commented in a news release.
Additionally, the raise reflects the firm’s core mission to arm businesses, particularly those led by minority entrepreneurs, with capital and resources. To date, it has invested in sectors including technology, financial services, media, and professional sports. The firm’s network includes 200 investors, with 90% being Black and around 23% being women.
Fund II will unlock “unique investment opportunities,” fostering growth for both investors and founders.
“Whether investing in real estate funds, VC funds, or tech startups, the more we share with our investor base, the more they want. We have just scratched the surface of mobilizing the 250,000+ Black accredited investors who are anxious to add private market investing to their portfolio and wealth-building strategies,” Carter told AFROTECH™. “We have a saying that ‘Money is the cheapest form of currency.’ For founders and business owners, yes, we make investments, but we are also obsessed with adding value in other ways. Advice, mentorship, relationships, access, helping them find talent… The list goes on. As a mentor in accelerators like Tulsa Techstars, we are proud to play a role in helping to grow the next generation of companies.”
