Knoxville-based Three Roots Capital outlined its successes during 2019 in a recently-issued newsletter that also noted the addition of a new member to its Board of Directors.
Marianne Wanamaker, an Associate Professor of Economics at the University of Tennessee, Knoxville, has joined the governing board of the community development financial institution that supports local companies with capital, advisory services, and introductions to its network of partners. The Martin, TN native is also a Research Associate at the National Bureau of Economic Research, Research Fellow at the Institute of Labor Economics, member of the Federal Workforce Policy Advisory Board, and previously Chief Domestic Economist at the White House Council of Economic Advisors where she also served as the Senior Labor Economist.
As far as 2019, Three Roots described it as “an eventful year.” Here are the highlights from the organization’s latest newsletter.
- The company forged valued partnerships, tackled new projects, and originated $24 million of new loans. These loans ranged in size from $25,000 to $7.6 million with an average loan size of $2.7 million. At the close of the year, Three Roots had approximately $40 million of funded loans in its loan portfolio.
- Three Roots deployed capital in a diverse range of industries throughout the state, including a financial technology company in Knoxville and an internet-based retail business in Chattanooga. Additionally, Three Roots provided new financing for commercial and retail real estate developments in Knoxville and Johnson City and a mixed-use real estate development in Cookeville. In Knoxville, Three Roots financed a multi-family, residential real estate project in the South Waterfront district.
- One of the most significant deals of 2019 was the Model Mill project in Johnson City, which will open sometime in 2020. Three Roots provided bridge financing for the high-profile, high-impact project and then participated as the leverage lender in a New Markets Tax Credit (NMTC) financing for the project. Three Roots provided capital and advisory services for the $19.5 million project, ultimately funding $10.6 million of the total amount. Recently, Three Roots submitted its second NMTC application, as the company continues to pursue additional sources of capital for companies and projects in the region.
- Earlier this year (2019), Three Roots was proud to help launch the TennesSeed Fund, an evergreen, seed-stage, proof of concept venture capital fund dedicated to investing in companies throughout Tennessee. The Fund is managed by TennesSeed Partners, which is a collaboration of Three Roots, Meritus Capital, and Innova Memphis. Grady Vanderhoofven, the Founder, President and Chief Executive Officer of Three Roots, serves as the Fund’s Co-Manager and as an investment committee member. The fund has already made three regional investments to date.
- Additionally, Three Roots Capital held an open house and ribbon cutting at its new headquarters in May 2019.
The organization further showcased several of its success stories here.
Grady Vanderhoofven, Founder, President and Chief Executive Officer of Three Roots Capital, is one of the panelists for our annual “Investor Outlook” series that starts later this week.