BURLINGTON, Vt. – Vermont Heritage Financial Group, a wholly owned subsidiary of Vermont State Employees CU, said it is partnering with Vermont Works, a new Vermont investment firm that plans to invest $50 million in Vermont companies through its social impact fund.
The objective is to spur economic growth and create new jobs in the Green Mountain State. The partnership will combine Vermont Works’ vision of increasing investments, particularly in growth stage capital—that is, capital for established companies looking to expand operations or relocate to Vermont—with VSECU, the credit union said.
VSECU CEO Rob Miller will advise the management company responsible for the investment fund and help guide the organization’s development and social impact investment decisions.
VSECU said it is focused on bringing people together to achieve its vision of creating possibilities for greater social, economic and environmental prosperity in Vermont. Vermont Works, based in Burlington, is raising a $50-million social impact fund that will have two success measures: financial strength of the fund itself and positive social impact on the community. This focus aligns with VSECU’s commitment to partner with like-minded organizations in support of its 60,000-plus member-owners and the communities in which they live, the credit union said. Vermont Works will support business acceleration through advice, guidance and various forms of mentorship, with a focus on creating livable wage jobs and addressing the state’s demographic challenge by growing the number of working-age Vermonters.
Under the agreement, VSECU, through its subsidiary VHFG, will invest in Vermont Works Management Company, LLC to support its growth and development. In addition to the anticipated social impact, VSECU also hopes to earn a return on its investment in further support of its members and mission. VSECU and CEO Miller will provide local perspective and help guide the organization’s work. Vermont Works estimates that approximately 85% of its social impact fund will come from outside of Vermont, bringing critical new investment to the state to meet a need for capital that is otherwise unfilled.
"This is an enormous opportunity for VSECU and its members to be a part of something new and innovative in Vermont, investing in our neighbors and friends who are building companies, creating good-paying jobs and growing the state's economy in bold new ways,'' said Miller. “This initiative is an important part of the capital continuum ensuring that established businesses can grow and thrive. It’s all about unlocking the potential that exists in our state to develop a more robust and sustainable economy and greater opportunities for more people to live and work here.”