Redefining Local Business Investment
Commonwealth Group specializes in using Business Development Companies (BDCs) to aggregate Main Street sized businesses into public entities with freely tradable stock.
A New Model for Main Street
As the creator of the "Main Street" BDC model, Commonwealth Group maintains an extensive knowledge base pertaining to the development and management of BDCs in the small and mid-sized business environment. More
Commonwealth Group is a Business Development Company (BDC) management firm and a consultancy that specializes in the use of BDCs as a means of providing capital and credit to small businesses and increasing the liquidity of investments in small and mid-sized businesses.
Commonwealth Group has two broad areas of activity: The establishment and administration of its own BDCs and the provision of advice, guidance and assistance in helping others to establish their own BDCs.
Managing Our Own BDCs
Commonwealth Group has already established several companies that will become fully fledged SEC-registered BDCs, and will develop many more over time. The first is Commonwealth Capital, a California benefit corporation that will likely be the first public benefit corporation BDC in the country. Commonwealth Capital has been structured to be an incubator of other BDCs (a.k.a. a "fund of funds" BDC). We call those incubated BDCs a Virtual BDC™ or VBDC™.
A VBDC is a wholly owned subsidiary set up under a BDC such as Commonwealth Capital, that acts like a BDC during its growth period and is designed to be spun out when it is capable of operating as a fully fledged independent BDC. Each VBDC will focus on a particular target constituency group (in a localized geographical area - e.g. Detroit metro, an industry type - e.g. solar energy, or an ownership type - e.g. women owned businesses).
Consulting With Others on Their BDCs
In its consulting business, Commonwealth Group will provide the following kinds of services:
- Evaluating the strategic opportunities provided for clients by developing their own BDC or participating in a Virtual BDC or VBDC.*
- Implementing clients' BDC strategy.
- Helping to find, evaluate and acquire portfolio companies for inclusion in a BDC.
- Setting up standalone turnkey BDCs for clients.
- Establishing Virtual BDC projects for clients under Commonwealth Capital for eventual spinoff into an independent BDC.
- Moving existing or new portfolio companies into an existing Virtual BDC under Commonwealth Capital.
- Training in BDC management for clients who wish to self-manage.
- Management of BDCs and Virtual BDCs on behalf of clients.
- Seminars and instruction on BDC formation and application for impact investors.
Why Work With Us
- We are the developers of the Commonwealth Group BDC approach.
- No other firm in the country has the breadth of knowledge and experience in the use of BDCs as originally contemplated by Congress with their creation in 1980, and updated to meet current market and regulatory conditions.
- We have extensive knowledge of the legal, operational and financial issues facing BDCs.
- We were among the first to recognize the problem of baby boomer retirements and develop mitigation measures for local economies.
- We offer a means of recouping investments in so-called "walking dead" venture capital portfolio companies.
- We support triple bottom line (3BL) business models.
For more information on how you might benefit from our services, call 650 641 1246 or email us.