Social impact private equity firm TPP Capital Management Group is launching a $1bn initiative to support health in black communities and is looking for LPs to support it.
The Philadelphia-based firm has said it is searching for high-net worth individuals, family offices, foundations, retirement systems, pension funds, endowments, corporations, insurance companies, philanthropists, fund of funds, banks and social impact investors for a new initiative to bolster black health by building it into black neighbourhoods.
The $1bn TPP hopes to collect from its LPs will go towards investing in up to five urban and underserved black neighbourhoods over the next ten years.
Through the investments, TPP hopes to transform these communities into integrated and scalable, compact, dense and community, health and wellness-centric focused districts.
“The challenge America will face in the coming months is how to accelerate, streamline direct investments and get capital working at scale in black neighbourhoods that will address the large-scale social and economic consequences of Covid-19,” said Anthony B. Miles, principal at TPP.
“TPP offers a direct way. Investors who partner with TPP don’t have to go through channels. TPP’s projects are shovel ready and after each raise is closed, capital will be immediately deployed simultaneously into multiple real estate asset classes and health interventions to accelerate the transformation of each neighbourhood.”
Philadelphia, Pennsylvania’s Tioga section will be the first community to benefit from the initiative.
TPP will pour the first $300m raised through its Regulation D 506 (c) offering into Tioga. where 85.5% of residents are African American, 33.3% are seniors and 43% live in poverty
“The health of this community and its residents has been forgotten,” said Miles. “Tioga’s residents, and the greater community, deserve more than a better life. They deserve an excellent one. There is unrest in the community; residents do not want to wait, and many cannot afford to – they need resources now.”
TPP has invested over five years laying the foundation for Tioga’s success. “We took the time to build relationships with the community, area stakeholders and political leaders,” Alexis Miles, VP and director of social impact at TPP. “We’ve master planned the neighbourhood by assembling the necessary sites for development at scale, entitled them for best and highest use and designed innovative health interventions.
“What we have discovered is that black people must have a significant leadership role in creating actionable change in black neighbourhoods. It would be challenging for outsiders to overcome social barriers and they could be met with extreme resistance by residents, thereby halting market entry which perpetuates the vicious cycle of non-action. There has been disinvestment here for over six decades, and our solution will create systemic change.”
TPP said its initiative will bring in-demand job opportunities and critical resources all with a healthcare, healthy food and smart technology focus to the Tioga and surrounding community.
TPP anticipates its immediate investment at scale will add to the neighbourhood, all within a five-city square block area, 92,392 square feet of pedestrian and streetscape improvements including new sidewalks, landscaping, lighting, way finding signage, street furniture and public art,1,407 residential units for rent or sale and 172,870 square foot of commercial, retail and office space.
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