Black business leaders skeptical of de Blasio’s equality initiative

Black business leaders skeptical of de Blasio’s equality initiative

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The lack of specifics on increasing access to equity capital for Black-owned businesses is troublesome, especially considering the recent data on how large the disparities are,” said Craig Livingston, managing partner at the Exact Capital development group.

_____________ A city effort to increase public-private investment in Black-owned small businesses and entrepreneurship  launched Wednesday by the de Blasio administration was immediately met with skepticism from the community it was designed to help.

The BE NYC initiative, which would be administered through the Department of Small Business Services, was developed with the cooperation of more than 1,500 Black business owners, activists and community leaders across the city, Mayor Bill de Blasio said.

“The idea is to do something profound. It is to close the racial wealth gap,” the mayor said.

De Blasio noted that during the coronavirus epidemic, Black-owned businesses are twice as likely to close permanently than a white-owned businesses. African-Americans are about 22% of the city’s population but account for only 2% of New York businesses ownership, he said.

The de Blasio administration hasn’t helped the statistics.

A July investigation by Crain’s found that the city snubbed minority-owned businesses when spending on its Covid-19 response. The city granted those businesses just 5% of $3.4 billion in such contracts and spending. Only 1% of the contracts went to Black-owned businesses.

“Something’s wrong about that picture, to say the least,” de Blasio said.  

The mayor’s inclusion plan drew criticism due to its vague nature and lack of hard funding numbers that would be allocated to Black-owned businesses and Black entrepreneurs.

“One of the frustrations we consistently have is there are a lot of press statements and programs and announcements but there are never specific dollar amounts,” said the Rev. Reggie Bachus, president of the 400 Foundation, a consortium of Black religious leaders who promote economic development.

The de Blasio administration’s new plan focuses on three lines of improvement to use relationships with a trio of private firms in the banking industry.

The first hallmark of the plan is access to capital and increasing the ability of Black business owners to enter into institutional equity markets. Goldman Sachs said it will provide access to affordable financing and business education, but no dollar amounts were pledged. Ernst & Young plans to offer 2,000 hours of free one-on-one consulting to Black business owners.

The second area is helping black entrepreneurs gain a greater foothold on the digital marketplace. Together with the SBS, Mastercard is creating a virtual storefront for Black entrepreneurs.

The city said it will generate new sources of revenue through government contracts.

“There are always more ants than elephants, those well-known well-branded organizations out there, but they don’t have the delivery system to get capital to those who are well positioned with community insights,” Bachus said. “We need dialogue and conversation and not one-sided directives.”  

Other Black business leaders had stronger criticisms.

“There’s doing something meaningful and real and then there’s the head fake. This looks more like a head fake to me,” said Craig Livingston, managing partner at the Exact Capital development group.

As chairman of the New York Real Estate Chamber—the largest advocacy group for Black developers in the state—Livingston is part of the Black Business Collaborative, which includes the Greater Jamaica Development Corp., Full Spectrum New York, Bedford-Stuyvesant Restoration and New York State Association Contractors—none of which was consulted on the BE NYC initiative, Livingston said.

“Who are these 1,500 folks they talked to? I have no idea,” he said. “What’s really concerning about that is when you’re talking about groups like the ones we mentioned, these groups represent companies at the top of the MWBE ecosystem.”  

The BE NYC road map document provided by the SBS lists the Greater Jamaica Development Corp. and Bedford-Stuyvesant Restoration as among the organizations that helped shape BE NYC, along with the Council of Urban Professionals, the Haitian American Caucus, the state’s NAACP chapter, the National Urban League, Gerald Adolph, the Rev. Ebony Kirkland, Minister Fay Henderson and Bishop Raymond Blanchette. 

Livingston considered the lack of specifics on increasing access to equity capital for Black-owned businesses is troublesome, especially considering the recent data on how large the disparities are.

A 2017 study by the Knight Foundation found woman- and minority-owned hedge funds control less than 1 percent of the asset-management industry. Minority-owned mutual funds control less than 0.5% of their total asset class, while minority-owned private-equity firms control less than 8% of their class.

“What percentage of the city budget is being directed to this?” Livingston asked. “It’s time to respond to Black economic interest with numbers and dollars.”

At the news conference, SBS Commissioner Jonnel Doris acknowledged there’s not much the city can pledge in terms of hard dollar amounts without a federal rescue package from Washington.

“We need federal support,” Doris said. “Our small businesses in this city cannot make it without the federal government stepping in on the financial side and helping them.”

Raul Castro ESQ

Counsel Fund Development
Raul is a seasoned attorney with extensive experience in both Big Law and in-house counsel roles, providing legal advisory services to Exact Capital. He specializes in advising broker-dealers and registered investment advisors on a broad range of regulatory, compliance, and securities law matters

Kevin J Ollie

Director - Business Development, Board Member. Kevin
joins Exact Capital as a distinguished member of the business development team, bringing over three decades of leadership , expertise and wealth of experience from his distinguished 25 career in professional basketball and coaching. Kevin’s commitment to excellence and his ability to foster strong relationships have been evident throughout his career. His experience in high-pressure environments and his proven track record of success make him an asset to Exact Capital as we continue to expand and innovate in the industry.

Lamar D. Williams,

Managing Director - Co-Partner Fund
Lamar brings over 25 years of financial sector expertise to Schulman Lobel CPA LLP. His distinguished career includes roles such as Managing Director at Cherry B Holland CPA, LLP, and Managing Partner of Sports and Entertainment at Berenfeld, Spritzer, Schecter, and Sheer CPA. In his current role, Williams focuses on acquiring GP and LP capital, leveraging his deep knowledge in business management, tax strategy, and cost segregation.

Renee Franco,

VP of Asset Management
With over 30 years in the multifamily industry, Renee Franco specializes in asset management, covering development, renovation, and lease-ups. Holding a Master’s in Business Management, she is a Certified Apartment Manager (CAM) and holds several industry certifications. As President of the Tennessee Association of Affordable Housing, Renee advocates for affordable housing policies and initiatives.

Brett Jureller

Director of Development - Design and Construction
Brett leads design and construction for Exact Capital, handling pre-construction, budgeting, and project management. Specializing in multifamily and mixed-use development, he has overseen projects totaling over $1 billion. Brett’s experience includes roles at Cape Advisors and JDS Development, and Turner Construction. He holds a Bachelor’s from Bucknell University and a Master’s in Real Estate Development from New York University.

Michael Callaghan,

Partner at Exact Capital
Michael Callaghan, Partner at Exact Capital Michael, as Partner, directs development, property management, and construction at Exact Capital. He manages real estate development across various asset classes, focusing on sourcing, negotiation, and financing. Michael plays a key role in building relationships with governmental agencies, banks, and community groups, essential for the firm’s development success.

Jack Heaney

Director of Real Estate Development
Jack oversees Exact Capital’s development pipeline, managing due diligence, feasibility, financing, and marketing. With over a decade in real estate development, previously he founded Fulcrum Properties and Architecture, focusing on sustainable mixed-use and affordable housing. An executive advisory member of the Urban Land Institute, Jack holds a Bachelor’s in Architecture and a Master’s in Real Estate Development from Columbia University.

Craig Livingston

Managing Partner, Exact Capital
Craig Livingston serves as the Managing Partner of Exact Capital, where he oversees the firm’s development activities, including structuring, negotiating, financing, and managing real estate ventures. With extensive experience in the industry, Mr. Livingston has advised, structured, and executed financing for numerous transactions within the firm’s real estate portfolio, totaling over $1.5 billion across multifamily, retail, and hospitality assets. As Chair of Exact Capital’s Investment Committee, he has spearheaded the firm’s regional expansion beyond New York, identifying strategic opportunities in emerging markets. Beyond his leadership at Exact Capital, Mr. Livingston is deeply involved in the real estate community. He serves as Board Chair of the New York Real Estate Chamber (NYREC), a consortium of diverse real estate developers throughout New York City and State. Mr. Livingston holds a Bachelor’s degree from the University of Connecticut and earned his MBA from Columbia Business School. He began his career at Booz Allen before moving into the financial sector at Goldman Sachs.