In its first investment since being created last year, the Baltimore Fund has made a major venture capital investment in a local dredging equipment company—a move that will create an estimated 40 jobs for area residents.
The Baltimore Fund, which is largely financed by the Open Society Institute-Baltimore and The Annie E. Casey Foundation, is making a seven-figure investment in Baltimore Dredge Enterprises, LLC.
Located in the Camden Carroll Industrial Park, Baltimore Dredge Enterprises has been in business in the city for 100 years and has a workforce of 50 people. The company will use the new capital to expand its Baltimore operation—creating jobs for welders, painters, mechanics and machinists at starting salaries ranging from $11 to $14 per hour.
“We’re pleased that our first investment in Baltimore exemplifies our dual mission of investing in growing businesses that will generate both attractive returns for our investors and new jobs for low-income workers in the city,” said Erik Johnson, Baltimore manager for Urban Growth Partners.
Determined to stimulate economic development in the city, the Baltimore Fund has accumulated $15 million in capital to invest in companies that will create jobs for low-income workers. The Fund expects to help generate more than 1,000 jobs and to provide a healthy return for its investors over the next several years.
“This is an exciting step for the Baltimore Fund,” said Patrice Cromwell, workforce and economic development fellow for OSI-Baltimore. “This investment in Baltimore Dredge Enterprises will lead directly to the creation of high quality jobs in a city that really needs them.”
The Baltimore Fund is part of a $48.5 million multi-state fund managed by TRF Urban Growth Partners, the venture capital arm of The Reinvestment Fund (TRF), one of the nation’s leading community development financial institutions. Based in Philadelphia, TRF has long been committed to investments that spur community and job development and provide a return to investors.
Baltimore Dredge Enterprises will use the investment capital to expand and to facilitate a consolidation with LWT, a Wisconsin-based dredge equipment firm. Baltimore Dredge Enterprises manufactures small-to-medium sized dredging equipment used, among other things, to maintain water purification and wastewater treatment plants, and to handle industrial waste.
“With the additional financial resources we will be hiring new staff at all of our locations, and adding dredges to our lease fleet,” said Gamal Elsaeed, the chair of Baltimore Dredges, and the newly elected chair of BDE. “We clearly are the leading U.S. player in the dredge manufacturing industry with a product and an organization to suit all customers.”
The company has provided equipment to customers in more than 70 countries, including China, Russia and Nigeria. Its product brand names include Pithog, Mud Cat and IMS.
In addition to the Open Society Institute and the Casey Foundation, which made challenge pledges of $5 million each in 2001, the Baltimore Fund’s investors include the Baltimore Community Foundation, Jacob and Hilda Blaustein Foundation, France-Merrick Foundation, Morris Goldseker Foundation, Deutsche Bank, Fund for Change, Johns Hopkins Institutions, Zanvyl and Isabelle Krieger Fund, Aaron Straus & Lillie Straus Foundation, Alvin and Fanny B. Thalheimer Foundation, the Hoffberger Foundations and several individuals.
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The Reinvestment Fund (TRF) mission is to alleviate poverty by building assets, wealth and opportunity for low- and moderate-income communities and persons. TRF accomplishes its mission through the strategic use of capital, knowledge and innovation. TRF has a wide array of finance, policy and service programs that further this mission: Affordable Housing Finance, Community Service Organization Finance, Small Business Finance, Venture Capital Investing, Workforce Services, Public Policy & Research, Energy Efficiency Finance, and Sustainable Development.