Three Roots Capital has deployed $204.5 million in capital in nine years
The Three Roots Capital team celebrated economic development, sound investments, and community business partnerships last week for their annual stakeholders dinner.
Three Roots Capital is about one year away from turning ten, and its founder, Grady Vanderhoofven, is proud of all they’ve accomplished in that span of time. The Knoxville‑based Community Development Financial Institution (CDFI) and Community Development Entity (CDE) provide impact-driven capital, coaching, and connections to strengthen underserved communities in Tennessee and Appalachia.
In 2016, Vanderhoofven launched the 5601(c)3 non-profit financial institution to tackle the tough lending landscape in Tennessee. It started with three people and has grown more than 266 percent in the past nine years.
Vanderhoofven and his team have raised more than $236 million, deployed more than $204 million, and received and deployed more than $95 million in New Markets Tax Credits (NMTC). Additionally, the CDFI has financed 23 local area start-ups and has played a key role in bringing at least four of them to Knoxville. In that same amount of time, Three Roots Capital has financed eight non-profit organizations and more than a dozen companies owned by women, veterans, and minorities. All of those organizations collectively created and/or retained more than 4,100 full-time jobs.
What does all this mean? Three Roots Capital is a catalyst for economic development and business growth in the East Tennessee region. But their reach expands beyond the business community.
The Three Roots team is also directly responsible for the development and redevelopment of more than 4,000,000 square feet of industrial, commercial, and retail space. And if all of that isn’t impressive enough, their dollars have also contributed to establishing 1,000 units of affordable housing in the area.
On Thursday evening, Three Roots was joined by community partners, bankers, elected officials, and entrepreneurs who have been directly affected by the non-profit financial institution. Knox County Commissioner Larsen Jay made a surprise proclamation that November 20, 2025, is to be “Three Roots Capital Day” in Knox County.
Other speakers included Chairman of the Board, David Bradshaw, who is the Oak Ridge Area Manager for Pinnacle Financial Partners, as well as Tennessee’s Lt. Governor Randy McNally.
Read more about Three Roots Capital here.
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