Roadmap Action Area: MOBILIZE INVESTMENT

Build a visible, scalable market for EO capital

The first priority is to increase the volume, consistency and coordination of capital flowing into EO funds and intermediaries. Today, EO is a very small and specialized corner of the private markets; to scale, it must become a recognized investment category.

Key strategic levers include:

• Expanding investor engagement and visible allocation commitments
  Investors’ public commitments create legitimacy, attract peers and normalize EO within investment committees and advisories.

• Deploying catalytic capital through aligned platforms
  Philanthropy, family offices and impact-focused investors can de-risk new products, seed emerging funds and buffer early structural frictions.

• Standardizing investment models and solving known friction points
  Standardize proven EO investment models and shared underwriting, while addressing key friction points—such as seller notes and senior-debt gaps—to unlock scale and attract more mainstream capital.

• Building intermediation to simplify investor entry
  Just as CDFI intermediaries or clean energy lenders helped professionalize their sectors, EO needs platforms and syndication models that allow investors to deploy larger checks more efficiently.
• Pulling low-cost or credit-enhanced capital into transitions
  Tapping existing federal tools (SBIC—the Small Business Administration’s [SBA’s] Small Business Investment Company program, CDFI Fund [Community Development Financial Institution], SBA loan guarantees), state guarantees and related bank partnerships can dramatically expand deal volume.

The Employee Ownership Capital Roadmap includes bright spots—successful funds, innovative structures and compelling narratives—that demonstrate the potential for rapid growth.