Three Roots Capital 2023 Year-In-Review

Happy New Year! Looking back on 2023, we want to carry forward the theme from our Stakeholder Appreciation Reception and say again “thank you” to every individual and every organization that chose to work with Three Roots Capital.

We genuinely appreciate our borrowers, portfolio companies, bank partners, institutional partners, and state and federal partners. Our success is evident through our productive collaborations with our stakeholders.

Some significant 2023 accomplishments include:

  • Closing more than $50,000,000 of transactions, including more than $37,000,000 of new loan originations
  • Closing new equity and equity-like investments in six young Tennessee companies
  • Supporting companies and projects in seven counties throughout Tennessee
  • Raising more than $51,500,000 from new and current bank partners
  • Raising $2,000,000 from the LendTN Program to be used as matching funds and becoming Tennessee’s first investor/lender to deploy capital under the State’s FundTN Program
  • Receiving a $45,000,000 allocation of New Markets Tax Credits (first-time recipient)

3Roots deployed capital as equity, subordinated and convertible debt, and senior loans, including deals requiring collaboration with local economic development agencies in Oak Ridge and Morgan County to facilitate tax increment financing for high-impact economic development projects. The commitment of $25,500,000 to finance multiple projects at the University of Tennessee Research Park was one of the year’s highlights. 3Roots supported small businesses, startup companies, for-profit and non-profit entities, and construction and permanent financing for affordable multi-family housing, industrial/manufacturing, and office projects.

We added new team members in 2023 to bolster and enhance our capacity and capability, including impact tracking, measurement and reporting. We also upgraded our information technology infrastructure, implementing a more capable and sophisticated software platform to support loan and investment administration and reporting.

2023 was 3Roots’ most successful year in terms of the number of deals closed, capital committed and deployed, and capital raised. In December, we raised $38,700,000. Coupled with the $45,000,000 of New Markets Tax Credits we received in the fall, we can provide substantial financing to job-creating small businesses and impactful projects in 2024.

Looking back on a fruitful 2023, we look forward to an impactful 2024. Most importantly, we look forward to collaborating with existing and new partners to help them accomplish their goals for 2024.