Daily Record Staff//February 9, 2023
//February 9, 2023
The BGE, Exelon and Exelon Foundation-funded Racial Equity Capital Fund (RECF), led by RockCreek, has invested $1 million in Sweeten, a Black, woman-owned software company serving the construction industry.
The investment — the first deployment of capital for the fund, which launched in 2021 — supports Sweeten’s platform that aggregates all data related to certified minority- and women-owned companies, then connects those companies with projects in their service expertise.
The RECF’s investment is part of a larger round by Sweeten to scale the firm’s Baltimore-based enterprise platform that matches developers/prime contractors with certified minority- and women-owned business enterprises (MWBE) for major construction projects with minority participation goals.
As part of Exelon’s ongoing efforts to promote equity and economic opportunity in the diverse communities served by the company’s six utilities, the RECF is making investments through debt and equity financing for minority-owned businesses throughout Exelon’s service areas over the next three years. RECF aims to strengthen communities and help minority businesses grow by providing affordable capital to businesses that have traditionally struggled to access and secure funding due to systemic barriers.
Exelon’s six utilities — BGE, Atlantic City Electric, ComEd, Delmarva Power, PECO and Pepco — and the Exelon Foundation contributed to the $36 million fund, and funding is done at Exelon’s own expense.
RockCreek, a global investment firm that has invested more than $8.4 billion in diverse firms, leads the RECF and makes the fund’s investment decisions. RockCreek is also focused on growing the capability of the capital fund through partnerships with minority-owned lending institutions, community banks, and chambers of commerce to source originations and provide additional investment and lending opportunities.
Sweeten’s enterprise platform provides greater exposure to minority- and women-owned businesses seeking contract opportunities. By combining industry expertise, sophisticated algorithms, and a robust database of certification records, the platform aims to bring transparency, innovation, and inclusiveness to MWBE participation in major construction projects.
Sweeten is the first company to receive an investment from the RECF, and the fund has other investments and several potential deals in its pipeline across Exelon’s service areas.s