P10's Enhanced Community Development Secures $65 Million NMTC
P10's Enhanced Community Development Secures $65 Million NMTC
NEW YORK — P10, Inc. (NYSE: PX), a prominent player in private market solutions, proudly announces a significant achievement for its subsidiary, Enhanced Community Development. This entity has been awarded a considerable $65 million allocation from the New Markets Tax Credit (NMTC) program, overseen by the U.S. Treasury Department's Community Development Financial Institutions Fund.
With the Treasury Department allocating a remarkable total of $5 billion for the 2023 NMTC program, Enhanced Community Development is geared up to enhance its mission of supporting underserved communities throughout the country. Luke Sarsfield, Chairman and CEO of P10, emphasized the importance of this allocation, stating, “Enhanced Community Development is continuing to meet the needs of underserved communities around the country.” This allocation not only aids in financing but also reinforces the possibility of generating significant social outcomes within the lower-middle market.
Impact on Economic Development
The impact of Enhanced Community Development extends significantly, with $750 million already deployed across the United States in both federal and state NMTC investments. Over 130 projects have benefitted, which include a variety of sectors such as manufacturing, healthcare, education, and community services, all essential for economically disadvantaged populations. Richard Montgomery, Managing Partner at Enhanced Capital, stated his gratitude, expressing, “We are incredibly honored to receive this $65 million allocation, which enables us to significantly increase the impact on the communities that need it most.”
This sentiment reflects the transformative nature of the NMTC program, conceived by Congress in 2000. The program is designed to stimulate economic growth in areas often overlooked by traditional investors, utilizing the leverage of federal tax credit incentives to attract private capital. Over the years, it has successfully facilitated the investment of more than $63 billion into low-income regions across the U.S., aiding in the creation or retention of over 894,000 jobs and the construction or renovation of nearly 260 million square feet of commercial real estate.
About Enhanced Community Development
Enhanced Community Development (ECD) focuses specifically on the financing needs of businesses and developments situated in or serving low-income communities. As a federally designated Community Development Entity, ECD is esteemed for its dedication to revitalizing these communities through strategic financial solutions. Since its inception in 2006, ECD has played a crucial role in deploying substantial resources to create job opportunities and foster economic growth in distressed areas.
Moreover, P10 stands out in the alternative asset management arena, functioning as a multi-asset class provider committed to ensuring access to a broader range of investment solutions tailored to varied needs within private markets. By June 30, 2024, P10 had amassed a diverse global investor demographic, representing over 3,700 investors spread across numerous states and countries worldwide.
What Lies Ahead for Enhanced Community Development
With this latest NMTC allocation, Enhanced Community Development is set to reinforce its impact further, targeting areas that require funding the most. Through community-directed investments, the organization aims to partner with various stakeholders, aiming to achieve meaningful developments that yield lasting benefits in underserved communities.
Frequently Asked Questions
What is the purpose of the New Markets Tax Credit program?
The NMTC program aims to stimulate economic development in underserved communities by attracting private capital investments through federal tax incentives.
How much funding has Enhanced Community Development received from the NMTC program?
Enhanced Community Development has been awarded a total of $65 million from the New Markets Tax Credit program in this latest allocation.
What types of projects has Enhanced Community Development financed?
It has financed a variety of projects, including manufacturing, healthcare facilities, educational institutions, and community services aimed at economically disadvantaged populations.
What is the historical significance of the NMTC program?
Since its inception, the NMTC program has facilitated investments exceeding $63 billion, leading to the creation or retention of approximately 894,000 jobs across the United States.
How does Enhanced Capital fit into this picture?
Enhanced Capital, as a significant impact investment firm, supports Enhanced Community Development's mission by providing crucial funding and resources to drive meaningful change in underserved areas.
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