The VSECU staff at the credit union’s Montpelier headquarters. Courtesy photo
VSECU announced Wednesday it would invest in Vermont Works through the credit union’s subsidiary, Vermont Heritage Financial Group, a credit union service organization.
Rob Miller, the chief executive officer at VSECU, will join the board of Vermont Works and sit on the board’s investment committee to help steer the fund’s investments into socially-minded companies.
Rob Miller, president of VSECU.
Vermont Works, which is still raising the $50 million, calls itself the state’s only professionally managed fund with a “double bottom line.” The companies it invests in must be profitable while having a socially minded cause.
Vermont Works focuses on companies that are already established and need to grow to take the business to the next level. The fund has already committed to invest in Vermont Farm Table in Bristol, Stonecutter Spirits in Middlebury, and BTV Ignite in Burlington.
VSECU wrote in an announcement that it will have the opportunity to earn a return on the investments that Vermont Works make, “enabling us to further support our members and follow through on our vision to empower possibilities for greater prosperity in Vermont.”
Miller said the value of the investment in Vermont Works is roughly the same sum as an average mortgage, and VSECU expects to generate a return. He said proceeds from the investment would go back to customers in one way or another
“We exist for the benefit of our members, so it will be reinvested back into our membership, either in the form of rates or other fees,” Miller said, “or perhaps even other (investments such as) a more vibrant online banking platform or mobile banking platform.”
“The principal benefit is really related to our purpose as an organization, which is to improve the lives of our members,” Miller said. “By investing in initiatives like Vermont Works, we’re able to have an impact on our communities, our local economies.”
He said that if Vermont Works brings more good-paying jobs to Vermont, those will be job opportunities for customers, who might make more money, and in turn might deposit more money into VSECU.
Miller said the two companies worked toward the partnership for nearly a year.
The post VSECU partners with $50 million venture capital fund appeared first on VTDigger.