Lafayette Square is a minority-controlled asset management platform that focuses on increasing capital access for underrepresented communities. By leveraging data-driven investment strategies, it aims to enhance financial inclusion and drive economic growth in underserved markets.
Funding
$13.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Traditional capital allocation often overlooks middle-market companies located in working-class communities, leading to a disparity in access to funding and resources. This uneven distribution of capital can hinder economic growth and job creation in underserved areas, exacerbating financial inequality.
Solution
Lafayette Square is a direct lending platform that leverages data analytics to strategically deploy capital and managerial assistance to middle-market businesses, particularly those located in overlooked places. By integrating localized data and a place-based investment strategy, Lafayette Square aims to identify and support companies that can stimulate economic growth and create long-term value in working-class communities. The firm offers a proprietary suite of comprehensive traditional and non-traditional benefits through its LS Solutions platform, designed to improve employee well-being, retention, and productivity. This approach seeks to generate better risk-adjusted returns for investors while fostering positive financial and social outcomes for all stakeholders, including portfolio companies and their employees.
Target Audience
Lafayette Square primarily serves investors seeking risk-adjusted returns and positive social impact, as well as middle-market companies located in working-class communities that require capital and managerial assistance to facilitate growth and improve employee well-being.
Features
- Direct lending platform focused on non-sponsored middle market investments.
- Place-based investment strategy integrating localized data to identify opportunities in overlooked markets.
- Proprietary LS Solutions platform offering comprehensive traditional and non-traditional benefits to portfolio company employees.
- Data-driven underwriting process utilizing analytics on place and labor to improve outcomes for portfolio companies and their employees.
- Focus on companies with annual revenues between $10 million and $1 billion and EBITDA between $5 million and $100 million.
- Flexible security exposure, including first lien, senior secured preferred, and subordinated debt, with potential for preferred and common equity investments.
- Incentivizes portfolio companies to adopt LS Solutions through interest rate stepdowns.
- Offers SBA debentures with 10-year terms to portfolio companies.