M6:33 Capital

m6:33 capital

Firm Headquarters: Wilsonville, Oregon

Date Founded: January 2020

m633capital.com

This Page was Updated May 2020

Investment Approach

INVESTMENT THESIS

Companies that hire formerly exploited or trafficked people and share the love of Christ with them, businesses that use their presence in countries that are difficult for traditional missionaries to access to share the Gospel, and companies who seek to use their business as a platform for sharing truth and love to a hurting world all serve as OUTPOSTS OF THE KINGDOM.

The modern Business As Mission movement has matured over the last two decades. Now, many such businesses are viable and strong financial investments. These businesses exist across different geographies, industries, and growth stages. They have one common factor – they were designed to have a KINGDOM PURPOSE.

When the operators of these companies have the opportunity to expand their operations and take more ground for the Kingdom, they must often leave their front line positions and spend significant time and energy to re-supply before deploying again. Supply lines to these missional outposts are non-existent. We aim to change that. WE AIM TO BE THE SUPPLY LINE.

INVESTMENT OVERVIEW

M6:33 Capital’s impact investment fund has a ten-year time frame with a raise once and deploy scenario.

M6:33 Capital will prioritize Kingdom impact ahead of the geography, industry, or growth stage of the target investment. That said, most of the potential portfolio companies that M6:33 Capital is tracking are in venture and early stages of development.

Investments to Date: Under 10

Focused Geographic Regions of Investment: 

  • We are headquartered in Oregon but are raising funds across the US. We anticipate domestic and international investments.

Focused Industries of Investment:

  • Agricultural 

  • Data, Software and Technology

  • Media, Publishing and Entertainment

  • Consumer Retail

  • Consumer Services

Investment Example:

M6:33 Capital will utilize the following processes and elements in a typical investment life cycle.

Post-investment

  • Advisors and board members have been identified who can assist the Managing Director with ongoing coaching and mentoring of portfolio companies. 

  • We will regularly pray with and for portfolio companies in monthly prayer calls. 

  • When necessary, we will invest in a portfolio company contingent on the company engaging with a professional business development coach. 

  • We will encourage portfolio companies to remain active in support networks, including OPEN Networks, the BAM Conference, the Navigators Global Enterprise Network, or marketplace ministry groups. 

  • We will actively track portfolio companies’ progress toward financial and Kingdom goals, and regularly report this progress back to investors with monthly updates, quarterly reports and annual reports. 

  • From the outset of all deals, we will work with portfolio companies to plan for a successful exit from the venture. 

  • When we have engaged in an equity deal, our preferred exit would be to sell our position back to the company. If that is not feasible, we will court other missionally aligned investors to purchase such an equity position.

Pre-investment

  • We have developed a pool of potential portfolio companies that match the investment fund thesis.

  • Investors will be surveyed to determine which investment opportunities are of greatest interest. Investors may suggest other companies that align with the investment thesis as potential portfolio companies. 

  • We partner with organizational partners and potential co-investors to secure intelligence on potential portfolio companies. 

  • We will utilize a wealth management firm that has a business consulting division that operates from a Christian worldview to conduct additional due diligence on potential portfolio companies. (The business consulting division of this company has a team of five who together have 95 years of relevant business expertise, and the assessment tool they will be using for M6:33 they have used 73 times in the last four years.)

  • Our investment committee suggests potential deal terms, and we engage legal counsel to assist with negotiating and drafting potential deals. 

  • Before the fund makes any deals, all investors have opportunity to view all the diligence and to vote on the deal.

  • We will negotiate to secure a board seat with portfolio companies when appropriate. 

Company Differentiator:

  1. We seek first Kingdom returns, looking at and initially measuring companies based upon their Kingdom impact plan.  

  2. Typical venture capital funds leave investment decisions to fund managers. We are different; we believe that the collective intelligence of our investors is far greater than the intelligence of a small group of fund managers, and therefore desire investor input into the decision-making process.

PREVIOUS OR ACTIVE PORTFOLIO COMPANIES INCLUDE:

n/a

Capital Raise Strategy

Our capital raise strategy is modified due to current COVID restrictions, but we are reaching out to potential investors on a 1:1 basis currently, and plan to reach out further through Zoom webinars and a series of explainer videos that are currently in development.

Total Assets Under Management: We are just beginning our fundraising stage. 

% of Capital from Top 3 Investors: More than 50%

Financial Reporting Frequency to Investors: Quarterly

Average Investment: $500,000

Minimum Amount: $200,000

Setup to accept charitable capital through the National Christian Foundation or other listing platforms? Yes

erik fast | Managing director

Erik Fast has worked with foundations, corporations, and high-net worth individuals who want to use their charitable capital to create social impacts for the last eighteen years. Through the work he has done at multiple institutions of higher education, and also as a frequent conference speaker and consultant, Erik has helped many organizations set, measure, analyze and communicate Kingdom and social impacts to donors and investors. Erik also is an effective team leader who has a great deal of experience assembling networks of individuals and organizations to reach common goals. In his career, Erik has led teams and divisions that have raised approximately $50 million in charitable dollars.

doug hoffman | director

Doug Hoffman retired after 42 years of working as a Chief Executive Officer in four separate Farmer Cooperatives. The past 23 years Doug grew Wilco to 900 employees in 26 locations in Oregon and Washington. Doug serves on the Boards for the Oregon FFA Foundation, REAL Oregon, Agricultural Advisory Council at Corban University and as a volunteer at Oregon Youth Authority, and is very involved in Salem Evangelical Church. In 2018, he assumed the role of Executive Director of Mercy, Inc. “Mercy” is a 501(c) (3) organization that presents the Gospel message around the world by meeting humanitarian needs such as: education, aid to orphans and widows, literacy, medical assistance, agricultural projects, disaster relief, clean water, meeting hunger needs, micro enterprises, and anti-exploitation work.

Chad Merrill | director

Chad Merrill has a long history as a successful entrepreneur, having been involved in the creation and leadership of multiple businesses. Most recently Chad founded Impact 2:52, LLC which owns and operates 17 baseball & soccer academies across the Southeast.  The Impact 2:52 companies also operate a management company that offers management, consulting & leadership development services to entrepreneurial companies.

Chad Merrill is the past President & CEO of the Fellowship of Companies for Christ International (FCCI).  Founded over 40 years ago, FCCI’s mission is to encourage & equip Christian CEOs to use their influence to grow the Kingdom.  FCCI operates throughout the US and in over 30 countries around the world.

Prior to Impact 2:52, Chad was a Founding partner in Onepath Systems, LLC. Founded in 2006 it has grown to a $200 million dollar technology company with over 1,000 employees. His strengths lie in leadership, strategy, culture development and out-of-the-box thinking that leverages partner skill sets to create Win-Win-Win relationships.

John Warton | director

John Warton heads the Business Professional Network, a non-profit organization that for the last twenty years has served as a conduit of encouragement, training, and support for business as mission (“BAM”) companies around the world. John holds an MBA from the University of Chicago, and has been active in property management for the past 30 years.  He earned an MDiv from Trinity Evangelical Divinity School, served as a pastor for 15 years, and was elected to the national board of the Evangelical Free Church of America.  He served for three years as COO of the Luis Palau Evangelistic Association, taught business leadership at Corban University, and is a lecturer at the Geneva Institute on Leadership and Public Policy.

Larry Sharp | director

Larry Sharp is the founder of IBEC Ventures and now serves as Director of Strategic Training and Partnerships. His weekly IBEC Insights blog (https://ibecventures.com/blog) reaches thousands of current and prospective BAM entrepreneurs in many countries. He travels within North America speaking and teaching in conferences, colleges and churches on themes related to BAM, Business for Transformation (“B4T”) and missions. His travels abroad relate to BAM/B4T, crisis preparation and management, and team building. Larry’s vision and expertise has helped IBEC influence dozens of BAM businesses. Larry currently focuses on the training sector, helping people understand Business as Mission and preparing consultants to serve overseas in high risk places. He also is an adjunct professor at several colleges.

Jim Fogleman | CFO

Jim Fogleman serves as the Chief Financial Officer of M6:33 Capital. He is also the CFO of West Street Investment Services, where he oversees fund administration for a number of funds, including Sovereign’s Capital. In this role, he oversees investment-level financial reporting and assists with compliance matters. Prior, he held CFO positions with privately held companies involved in start-ups, turnarounds, and real estate development. These companies included Blue Rhino Corporation, a propane cylinder exchange marketer/distributor; Platinum Service Corp., a developer of Boston Market restaurant properties located primarily in the Carolinas and Georgia; and National Packaging Solutions Group, a southeastern US manufacturer and distributor of industrial packaging. Mr. Fogleman began his career in public accounting with Price Waterhouse and later with Pryor, Sills and Fogleman and the Daniel Professional Group. He earned a BS from the University of North Carolina at Chapel Hill and is a licensed CPA in North Carolina. Mr. Fogleman and his wife Mary Edna have three sons.

Team and CULTURE

While not complete, one of the things investors have found helpful in the past is seeing how employees, customers have reviewed someone online. As of the date of completing this out …

  • Glass Door Rating: n/a

  • Facebook Review Rating: n/a

Spiritual Integration and Impact:

Faith Driven Investing can span a wide range from high yield to concessionary returns that have a higher level of spiritual integration. Having clear expectations of this philosophy is key for the movement. Each investment is unique and you might want to select multiples but if you had to choose one quadrant that best fits your groups spiritual integration and financial performance targets … What would it be?

We are targeting the top-performing Kingdom purpose companies, regardless of their industry, geography or stage of development. Our first priority is to identify companies that have a strong Kingdom impact, and we believe that M6:33 Capital investments will consistently perform well with a Kingdom impact. As for financial returns, we believe that many of the target investments will realize above market financial returns. That said, we may invest in Kingdom purpose companies that also produce concessionary financial returns (but have very strong Kingdom impact). Given this range of potential financial returns, we feel that an average market rate financial return is possible.

Describe the Spiritual Integration Activities of the Fund:

  • M6:33 Capital is prioritizing Kingdom impact of its potential portfolio ahead of all other types of impact or return. We will be using a third-party to evaluate this Kingdom impact. Our goal is to leverage this Kingdom impact to encourage others to make faith driven investments.

Is Impact and Spiritual Integration Tracked?

  • We will be tracking and evaluating Kingdom impact, most likely using Eido Research or Calvin Edwards & Co.

Are you partnered with any other organizations?

  • Yes, we are aligned with many other organizations that align spiritual integration and Kingdom work, including, but not limited to: 

    • IBEC Ventures. IBEC provides BAM consulting, training and coaching to missional entrepreneurs. Larry Sharp, the founder of IBEC Ventures, is on the M6:33 Capital board of directors. 

    • Business Professional Network (BPN). For over twenty years, BPN has served to support BAM projects in developing countries around the globe. John Warton, the president of BPN, is on the M6:33 Capital board of directors. 

    • FCCI. Chad Merrill, the pas president of FCCI, is on the M6:33 Capital board of directors. 

    • Mercy, Inc. Doug Hoffman, the president of Mercy, Inc. is on the M6:33 Capital board of directors. Mercy, Inc. is a Christian humanitarian relief organization operating around the world. 

    • Impact Foundation. We have been approved by and have received investments through the Impact Foundation. 

    • Maclellan Foundation. M6:33 Capital has shared information about its potential target investments with the Maclellan Foundation, and in turn the Maclellan Foundation has shared intelligence with M6:33 Capital about its impact investments. Informally, representatives of the Maclellan Foundation have stated that the target investments of M6:33 Capital overlap with the investment interests of the Maclellan Foundation “80 to 90% of the time.” Given these shared interests, the Maclellan Foundation and M6:33 Capital have agreed to share due diligence and explore co-investing opportunities down the road. 

    • Trustbridge Global Network. Through the TrustBridge Global Network, individuals with Donor Advised Funds at the National Christian Foundation make grants around the world. The principals at TrustBridge have offered to help the M6:33 Capital with repatriating investment funds back to the United States in certain circumstances. TrustBridge Global has also offered to share due diligence they have conducted on business as mission companies. 

A lot of Investing Conversations look at Social Impact related to the United Nations Sustainable Development Goals. Is there one of these that most resonates with your organization?

“Decent work and economic growth” most resonates with M6:33 Capital. “Industry, innovation and infrastructure”, “no poverty”, “zero hunger”, “good health and well being” and “peace, justice and strong institutions” may also be met through the work of M6:33 Capital. 

If you’re wildly successful how will the world be different?

Our mission is three-fold:

  1. Glorify God by investing in companies that honor Him,

  2. Secure a financial return for investors, and

  3. Leverage the potential success of these investments to inspire additional impact investments into Kingdom-purpose companies. 

If we are wildly successful in this mission, Christians will understand much better that they can secure Kingdom returns and financial returns from the same resources. Not only would we like to see many more Kingdom impact investors, but we would also like to see many more faith-drive entrepreneurs aiming to use their business as a platform to share the Gospel and love people in the name of Jesus.

WHY The FAITH DRIVEN INVESTOR?

  • Why are you compelled to be certified and a part of the Faith Driven Investor Group? M6:33 Capital is eager to see the faith-driven ecosystem grow and believe that joining like-minded investors will help us all in our individual missions. We look forward to the possibility of co-investing alongside others in the faith driven investor network, and hope and pray that our collective work will bring praise and glory to Jesus Christ.

  • Does the leadership align with the Unifying Principles on Faith Driven Investor and agree to the Code of Conduct? Absolutely

  • Who nominated you to be listed on the FDI site? Justin Forman, Faith Driven Investor

AFFILIATIONS- Are you a part of any third party groups, that you would like to list here?

No

Learn More

  • Key Contact Name: Erik Fast

  • Phone: +1.503.970.8399

  • Email: erik@m633capital.com