Three Roots Capital celebrates 10 years of community impact, deploying $263 million in capital
"When we raise and deploy capital, we create positive economic and social impacts in our community. We provide capital that creates jobs, and people use their salaries from those jobs to feed, house, and clothe their families," said the financial institution's founder.
Ten years. 140 loans. More than $263 million put to work in communities that often struggle to access traditional capital.
That’s the track record Three Roots Capital celebrated Thursday night at a stakeholders’ dinner marking its 10th anniversary. More than 100 supporters, stakeholders, friends and family of the organization showed up to celebrate.
“You don’t stay in business for 10 years with success if you don’t have a bunch of partners, collaborators, and stakeholders,” Vanderhoofven said.
Grady Vanderhoofven founded the Knoxville‑based 5601(c) (3) nonprofit financial institution in 2016 to provide impact-driven capital, coaching, and connections to strengthen underserved communities in Tennessee and Appalachia. Today, he serves as the company’s President and CEO.
A decade of impact
Since the organization’s inception, Vanderhoofven and his team have raised $284 million and deployed more than $263 million across 140 loans. Additionally, in the past three years, the Community Development Financial Institution (CDFI) has deployed more than $180 million in New Markets Tax Credits.
These credits, explained here, address manufacturing and industrial projects in economically distressed areas of the Appalachian Highlands.
Some of those projects include:
- $25 million for the University of Tennessee Research Park to help develop the Innovation South building and the new Nursing Scholars Facility in the Innovation North building
- $11.5 million for the City of Knoxville’s Transforming Western project
- $50 million for AAON’s expansion in Memphis
- $25 million for Custom Foods of America
Three Roots has also provided $32.1 million in financing for community projects in Oak Ridge since 2017.
On the startup side, Three Roots has made equity investments in 19 companies since 2017, including Blank Beauty, EVRCool, Daily Crunch, ATS Innovations, TreisD and Authentrics.AI.
Through its startup investments and financing for other organizations, Three Roots has helped create or retain 6,864 full-time jobs.
“When we raise and deploy capital, we create positive economic and social impacts in our community. We provide capital that creates jobs, and people use their salaries from those jobs to feed, house, and clothe their families,” Vanderhoofven said at the dinner.
That makes Three Roots a catalyst for economic development and business growth across Tennessee. But its reach extends beyond the business community.
Three Roots financing has helped develop more than 7.2 million square feet of industrial, commercial and retail space.
And if all of that isn’t impressive enough, its dollars have also helped establish 1,340 affordable housing units in the region.
Thursday’s celebration brought together community partners, bankers, elected officials and entrepreneurs who have worked directly with the nonprofit lender.
Read more about Three Roots Capital here.
Like what you've read?
Forward to a friend!