BJC HealthCare, the St. Louis region’s largest employer, has invested in a local fund that was launched to provide capital to local Black and Latino entrepreneurs.
The health system said Wednesday it has made an investment in Wepower Capital, a fund founded by St. Louis nonprofit Wepower. BJC declined to disclose the amount of its investment.
Wepower, which seeks to create equitable education and economic systems in St. Louis and announced the fund's launch in August 2021, said Wednesday its fund totals $1.5 million. It previously said that investors in the fund have included New York-based Living Cities, a collection of foundations and financial institutions focused on making investments to eradicate racial gaps, as well as St. Louis-based investors.
BJC’s investment comes after Wepower Capital in September 2022 announced its first investment from the fund, provided to St. Louis e-commerce startup Bold Xchange. Wepower said Wednesday it plans to make additional investments this year.
"BJC’s investment is an enlightened choice. It reflects an understanding that investments can be used as a tool to advance equity,” said Yoni Blumberg, vice president of community wealth building at Wepower. “As a region, the more we think about our investments holistically and consider both the social and economic impact they can achieve, the sooner we will unlock billions of dollars to invest in creating a much more vibrant, equitable, and sustainable future for St. Louis and the world more broadly."
Wepower’s investment fund uses a revenue-based funding model that involves companies paying back the funding monthly based on a fixed percentage of their revenue. It said its approach eliminates barriers, such as minimum credit score and personal guarantees, that have made acquiring loans difficult for underrepresented business owners. Wepower seeks out investments in Black- and Latino-owned companies that have between $5,000 and $100,000-plus in monthly revenue. It provides funding ranging from $50,000 to $200,000 per investment and operates with what it describes a “capital+” thesis that involves providing coaching and networking opportunities to companies it backs.
For BJC, which has more than 29,500 employees in the St. Louis area, its investment into Wepower Capital follows the launch last year of its Community Health Improvement initiative that seeks to reverse health disparities.
“BJC’s proactive approach to health and well-being focuses on the social and economic factors that are root causes of health inequities, and this includes investing in regional organizations like Wepower Capital. Together we can work to close the racial wage and wealth gaps and help create generational wealth in Black and Latinx communities," said Christopher Nolan, BJC’s director of anchor Initiatives.
BJC HealthCare is one of the nation's largest nonprofit health systems, with net revenue of $5.5 billion. It primarily serves the greater St. Louis, southern Illinois and southeast Missouri regions, operating 15 hospitals and other health service organizations.
