Macellum raising $200M to invest in minority-led companies

Activist investor Macellum Capital Management is raising a private equity fund of between $150 million and $200 million to invest in companies owned or led by Black or other minority leaders, founder Jonathan Duskin tells Axios.

Why it matters: Only 2% to 3% of annual private equity funding goes to minority-owned or led businesses, says managing partner Daniel Balzora, who is running the fund.

• He pointed out that one of the biggest obstacles to closing the gap is the lack of relationships between minority-owned businesses and the investment community.

Details: Investors include G-III Apparel Group and Citi Trends.

• Bob Johnson, the founder of Black Entertainment Television (BET) and the RLJ Companies, will sit on the advisory board along with executives from G-III, Citi Trends and Macellum.

Between the lines: The fund will make venture and growth investments in companies in the retail and consumer sectors, including health and beauty, apparel, food and beverage, home goods and experiential or lifestyle.

• Software and hardware suppliers and service providers to large consumer and retail operations will also be considered.
• G-III will provide access to its distribution and global supply chain capabilities to help scale the businesses.

Richard Collings writes the Axios Pro Retail deals newsletter. Start your free trial at AxiosPro.com.