Exelon’s $10 Million Investment Milestone Fuels Urban Growth and Local Opportunity

Rhea-AI Summary

Exelon (Nasdaq: EXC) has invested nearly $10 million in nine local businesses in Baltimore, Chicago, Washington D.C., and Philadelphia as part of its Community Impact Capital Fund (CICF) initiative. Launched in 2022 with the Exelon Foundation, the $36 million CICF aims to support economic growth and entrepreneurship in under-resourced communities. Notable investments include Sweeten ($1M), Gemini Energy Solutions ($1M), and Crosstown Fiber ($2M). The fund is managed by RockCreek, and businesses facing financing challenges are encouraged to apply.

Positive

• $10 million invested in nine local businesses.
• Part of a $36 million fund launched with the Exelon Foundation.
• Promotes economic growth and entrepreneurship in under-resourced communities.
• Significant investment in key sectors like technology, healthcare, and clean energy.
• Encourages job creation and local reinvestment.

Negative

• Potential for shareholder dilution due to ongoing investments.
• Funds allocated might not show immediate financial returns.
• Focused investments in under-resourced areas could entail higher risks.

Insights

Financial Analyst

Exelon's investment of nearly $10 million into local businesses can be seen as a positive indicator of the company's commitment to community development and long-term value creation. From a financial perspective, this initiative may not have an immediate impact on Exelon’s stock price, but it signifies a strategic focus on sustainable growth and social responsibility. Investors could appreciate Exelon's efforts to fuel economic opportunities in underserved areas, which might lead to increased customer loyalty and enhanced brand reputation. These factors can contribute to incremental revenue growth and improved profitability over time. Additionally, the involvement of the Exelon Foundation adds a layer of credibility and trust to the endeavor as it demonstrates a tangible commitment to social causes beyond mere business interests.

Market Research Analyst

Exelon's investments into diverse local businesses such as technology and healthcare firms suggest the company's broader strategy to diversify its investment portfolio and support sectors with significant growth potential. For instance, companies like Sweeten and Nexamp have the potential to disrupt traditional industries like construction and energy, respectively. The focus on these companies aligns with trends in digital transformation and clean energy, which are experiencing accelerated growth. Moreover, the emphasis on businesses that foster economic development in under-resourced communities may position Exelon as a leader in corporate social responsibility. This can attract socially conscious investors and partners, potentially increasing overall market valuation and investment appeal.

Community Development Expert

The Community Impact Capital Fund (CICF) appears to be a well-thought-out initiative designed to create a ripple effect in socio-economically disadvantaged communities. By providing capital to businesses like Aging & Diverse Home Healthcare Services and CINQCARE, Exelon is addressing critical needs such as healthcare for seniors and chronic disease management. This targeted approach can lead to job creation and improved local economic conditions, which are essential for sustainable community development. Furthermore, the inclusion of technology-driven companies like Crosstown Fiber aims to bridge the digital divide and enhance educational opportunities, thus fostering long-term socio-economic benefits. This holistic strategy not only benefits the communities but also strengthens Exelon's position as a socially responsible corporation, likely enhancing its public image and stakeholder relations.

Exelon has provided nearly $10 million in funding to nine local businesses in Baltimore, Chicago, the District of Columbia and Philadelphia to spur economic opportunity and entrepreneurship

CHICAGO--(BUSINESS WIRE)-- Exelon (Nasdaq: EXC) announced that as of June 2024, the company has invested nearly $10 million in nine locally-owned businesses across Exelon’s service areas as part of the company’s Community Impact Capital Fund (CICF) initiative, with additional investments expected throughout the remainder of the year. Exelon launched the $36 million fund in partnership with the Exelon Foundation in 2022, to help businesses in under-resourced Exelon communities grow and prosper by expanding access to capital.

“By investing in community-based businesses, we’re fortifying the economic future of the regions Exelon serves,” said Exelon’s Executive Vice President of Public Policy and Chief External Affairs Officer Colette Honorable. “We’re excited about the nine innovative companies that have received funding so far and look forward to partnering with more businesses that are poised to create a positive ripple effect with the right resources, including creating more jobs and reinvesting in their neighborhoods.”

The nine businesses receiving funding so far this year are:

• Sweeten ($1M), Baltimore, Md.: A technology company that is reinventing how the construction industry hires labor for residential and commercial projects, with an expanding technology platform that vets and onboards construction professionals and connects them with projects to enables greater exposure for minority and woman-owned business enterprises.
• Aging & Diverse Home Healthcare Services ($187,000), Philadelphia, Pa.: A provider of in-home healthcare services for seniors and disabled individuals, currently expanding its business to include skilled nursing care.
• Gemini Energy Solutions ($1M), Washington, D.C.: A tech-enabled energy audit and asset development company focused on accelerating the clean energy transition with solutions for historically underserved communities.
• CJR Development Partners L.C. ($600,000) Washington, D.C.: A provider of construction management real estate development, primarily focusing on supporting public-private partnership projects.
• Public Sector Solutions Group (PS2G) ($600,000) Washington, D.C.: A provider of technology systems integration that supports the full-life cycle of software development.
• Escalate ($500,000) Washington, D.C.: A workforce development platform that brings together educational program design and AI to improve corporate retention and create advancement opportunities for frontline workers.
• Crosstown Fiber ($2M) Chicago, Ill.: Crosstown Fiber builds, owns, and operates a fiber optic telecommunication network in the greater Chicago area, helping to bridge the digital divide. Their network is expected to enable access to high-speed internet for hundreds of thousands of students at hundreds of schools throughout the city of Chicago.
• Nexamp ($2M) Chicago, Ill.: Leading community solar infrastructure business, with end-to-end capabilities and a presence in all major U.S. community solar markets.
• CINQCARE ($2M) Washington, D.C.: A tech-enabled value-based contract provider, capable of managing complex services to Medicare & Medicaid populations with a high prevalence of chronic disease.

Exelon’s CICF applications are reviewed as they are received on a rolling basis through a process managed by RockCreek, one of the world’s largest diverse-owned and managed investment firms. Businesses that meet the following specifications are encouraged to apply:

• Facing challenges in securing financing or getting access to capital for short term as well as long term needs.
• Located in and/or have a positive impact on historically disenfranchised or socio-economically disadvantaged communities in Exelon’s service areas, including, without limitation, through growing local businesses and creating and retaining jobs .

Interested businesses are encouraged to apply online and/or contact RockCreek at cicf@therockcreekgroup.com for more information.

For more information on Exelon’s CICF, please visit: Community Impact Capital Fund. To learn more about Exelon’s efforts to support the diverse communities we serve, visit: Diversity, Equity and Inclusion.

About Exelon

Exelon (Nasdaq: EXC) is a Fortune 250 company and the nation’s largest utility company, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco). Nearly 20,000 Exelon employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow Exelon on Twitter @Exelon

About the Exelon Foundation

The Exelon Foundation is an independent, nonprofit organization funded solely by Exelon Corporation through shareholder dollars. The mission of the Foundation is to encourage respect for the environment, support innovative STEM education programs and strengthen the social and economic fabric of the community by providing a match to Exelon employee contributions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606017105/en/

James Gherardi

312-394-7417 Media Hotline

James.Gherardi@exeloncorp.com

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Source: Exelon Corporation

FAQ

What is Exelon's recent investment initiative?

Exelon has invested nearly $10 million in nine local businesses as part of its Community Impact Capital Fund (CICF) to support economic growth and entrepreneurship in under-resourced communities.

Which areas have benefited from Exelon's $10 million investment?

The investment has benefited businesses in Baltimore, Chicago, Washington D.C., and Philadelphia.

What is the purpose of Exelon's Community Impact Capital Fund?

Exelon's CICF aims to support economic growth and entrepreneurship in under-resourced communities by expanding access to capital.

How much has Exelon committed to the Community Impact Capital Fund?

Exelon has committed a total of $36 million to the Community Impact Capital Fund.

Which company received the highest investment from Exelon?

Crosstown Fiber and Nexamp each received the highest investment of $2 million.