Key Takeaways
- • LaPhair Capital Partners, a minority-led, influencer-backed venture capital firm, launched its flagship Alpha Fund I with a target size of $100 million.
- • The fund will focus on early-stage, Series A/B and growth-stage companies in underserved communities within high-growth markets, and seeks a minimum of 35% annualized returns.
- • Kinexx Modular Construction, which builds homes in under ten days for urban infill, is named as a target investment; LaPhair led an initial round in 2021.
- • Investors in the broader LaPhair model include current and former NFL, MLB and NBA athletes, and the firm cites a McKinsey estimate of a $1-1.5 trillion US consumption opportunity from closing Black economic inequalities.
Summary
LaPhair Capital Partners, a New York-based venture capital firm describing itself as minority-led, influencer-backed and performance driven, announced the launch of its flagship Alpha Fund I, according to a Business Wire release dated October 12, 2023. The fund has a target size of $100 million and will invest in companies focused on social responsibility in underserved communities within high-growth markets. Deployment will center on early-stage, Series A/B and growth-stage companies, with the stated aim of helping them become market leaders. The fund seeks a minimum of 35% in annualized returns, with horizontal and/or vertical leverage opportunities.
The firm frames the strategy as an effort to close the gap of systemic disparities. Citing a 2019 McKinsey & Company report, it notes that closing systemic Black inequalities in jobs, wages, housing and investment represents a $1-1.5 trillion additional consumption opportunity within the US alone. Adrian Muhammad, Managing Partner at LaPhair Capital Partners, said, "There are no limits on return when you invest in people," adding that the firm works with individuals who understand that value and social responsibility are not mutually exclusive.
One named target is Kinexx Modular Construction, which the release says builds homes in less than ten days using a process aimed at urban infill for buyers previously unable to afford a home. The release cites an estimated US shortage of 7.3 million homes, sourced to the National Low Income Housing Coalition. LaPhair led an initial investment round in Kinexx in 2021. The release states that investors include current and former professional athletes from the NFL, MLB and NBA, and highlights influencer participation focused on social responsibility as a distinguishing feature of the LaPhair model.
Alec Ogletree, former NFL linebacker and General Partner of Alpha Fund I, described the fund's approach as investing with purpose that turns capital into catalysts for positive change. The firm states that Alpha Fund I will accelerate growth in the venture ecosystem serving high-growth, underleveraged companies that target under-invested consumers in minority markets. The release does not disclose a fund close, committed capital, or a first-close date.
The firm frames the strategy as an effort to close the gap of systemic disparities. Citing a 2019 McKinsey & Company report, it notes that closing systemic Black inequalities in jobs, wages, housing and investment represents a $1-1.5 trillion additional consumption opportunity within the US alone. Adrian Muhammad, Managing Partner at LaPhair Capital Partners, said, "There are no limits on return when you invest in people," adding that the firm works with individuals who understand that value and social responsibility are not mutually exclusive.
One named target is Kinexx Modular Construction, which the release says builds homes in less than ten days using a process aimed at urban infill for buyers previously unable to afford a home. The release cites an estimated US shortage of 7.3 million homes, sourced to the National Low Income Housing Coalition. LaPhair led an initial investment round in Kinexx in 2021. The release states that investors include current and former professional athletes from the NFL, MLB and NBA, and highlights influencer participation focused on social responsibility as a distinguishing feature of the LaPhair model.
Alec Ogletree, former NFL linebacker and General Partner of Alpha Fund I, described the fund's approach as investing with purpose that turns capital into catalysts for positive change. The firm states that Alpha Fund I will accelerate growth in the venture ecosystem serving high-growth, underleveraged companies that target under-invested consumers in minority markets. The release does not disclose a fund close, committed capital, or a first-close date.
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