While 2025 is well underway, we want to pause and provide a look back on a year of meaningful investments and milestones.
To date, we and our partners have invested more than $5 billion in small businesses, affordable housing, and renewable energy—and 2024 brought continued growth and innovation in those areas, laying the groundwork for the firm to thrive in 2025.
Supporting Small Businesses
Advantage Capital and its partners have always prioritized investing in growth-ready entrepreneurs and industries in underserved communities—investing more than $4.3 billion in portfolio companies to date. Last year was no different—as we invested in small businesses across the country through important and impactful state and federal programs that incentivize investment in underserved areas.
The InvestCT program in Connecticut is a perfect example of a public-private partnership that accomplishes its objectives with investments like Servicengine and Whitman Controls—local businesses committed to their communities.
In Oklahoma, the state’s Rural Jobs Act offers another example of a powerful program supporting small businesses in overlooked areas—driving job growth in some of the most rural parts of the state. With the help of this program, we were able to make investments in Malone’s CNC Machining—an aircraft parts and assemblies manufacturer located in Grove, Oklahoma—and Duncan Machine Products—a full-service additive and subtractive manufacturer and precision machining business in Duncan, Oklahoma.
In 2024, many of our portfolio companies saw impressive expansion, including Farmstead Manufacturing and Commercial Specialty Truck Holdings (CSTH). Farmstead Manufacturing opened its new production warehouse in Leeds, Utah, allowing the company to hire a projected 20 full-time employees at the warehouse and another 45 workers throughout the organization. CSTH was joined by Kentucky Governor Beshear to celebrate the opening of its new state-of-the-art 250,000-square-foot facility in Cynthiana, Kentucky.
As we look ahead, we are excited to continue investing in growth-ready small businesses, supporting economic growth and financial stability for underserved communities for generations to come.
Financing Affordable Housing
In addition to supporting small businesses, our Affordable Housing team is paving the way to increasing access to safe, high-quality, and affordable homes. To date, we have syndicated more than $ 1 billion in low-income housing tax credits to support stability.
And last year was one of the firm’s most successful years yet financing affordable housing developments. Recently, we invested in three affordable housing developments in Georgia to bring 623 homes to low-income families in the state. We leveraged more than $53 million in Georgia Low-Income Housing Tax Credits (LIHTC) to finance the development of The Flats at Stone Hagon and the Villas at Stone Hagon in Atlanta, along with Applewood Towers in Lawrenceville. Additionally, we helped finance two other Georgia affordable housing developments—Autumn Ridge and Northside Hills—in connection with the Georgia LIHTC program—one of many impactful state programs that aid us in supporting affordable housing across the country.
Another important state program is the Indiana Affordable and Workforce Housing Tax Credit program. Last year, we made history with AHEPA 100-II in South Bend, Indiana—our first transaction in connection with this impactful program.
The impact expands well beyond these states, as we helped finance five Virginia affordable housing developments in 2024—ZeroPak, Pecan Acres II, The Harbor at Quantico Creek, Smith Ridge Commons, and Kindlewood II. These developments will provide critical affordable housing to communities across Virginia.
And the team hasn’t stopped there, financing affordable housing developments in the Willow Estates in Colby, Kansas, the rehabilitation of the Murphy-Blair apartments in North St. Louis,
Missouri, the Oak Park Townhomes in Kansas City, Missouri, and Alley’s End in Oklahoma City, Oklahoma. These developments are the beginning of the impact we are making in the ever-important affordable housing sector, with more to come.
Expanding Renewable Energy Access
Our Renewable Energy business line is also accelerating its impact within an innovative industry, completing more than $1 billion in renewables transactions to date to provide clean energy solutions. In 2024, we continued to lead the way in financing renewable energy projects, closing significant deals in Texas.
The team began the year with the closing of a 10-year Production Tax Credit (PTC) transfer commitment in Hornet Solar, a 600 MWac solar project in Texas. The Hornet Solar project will be one of the first utility-scale solar projects to utilize the PTC and transfer provisions established by the Inflation Reduction Act (IRA). Once complete, Hornet Solar will be one of the largest single-phase solar projects in the United States and provide power to more than 160,000 homes annually.
Later in the year, the team closed its second investment with Sabanci Renewables, representing a $137 million investment in Texas-based solar development Oriana. The 232 MWdc solar project is projected to reach commercial operations in Spring 2025 and will power the equivalent of 65,000 homes in Texas with clean energy.
New Markets Tax Credits (NMTC) Financing
In 2024, our Tax Credit Consulting team coordinated the use of NMTC financing to support job creation and economic growth in underserved areas. Key projects included $21.5 million in financing for Georgia Modular, a modular housing facility in Minneapolis, $21.5 million in financing for the expansion of a Rooms To Go distribution center in rural North Carolina, and $5 million in financing for Karl Senner, a marine propulsion parts facility in Louisiana, collectively generating hundreds of new and retained jobs.
We also closed $60.5 million in NMTC allocation for community-focused projects, funding affordable housing in New Orleans, healthcare expansion and community facilities in rural Arkansas, Memphis, and Chicago, and hurricane relief for a food bank in Western North Carolina.
With $117.5 million in NMTC financing supporting $172 million in total projects, we continue driving impact through strategic project financing that strengthens businesses and communities.
Final Thoughts
As we reflect on the milestones and successes of 2024, we are energized by the impact we’ve made and the opportunities that lie ahead. With a continued commitment to driving meaningful
investments in small businesses, affordable housing, and renewable energy, we look forward to building on this momentum in 2025—creating lasting economic growth in underserved communities across the country.
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Advantage Capital is an Investment Adviser registered with the U.S. Securities & Exchange Commission. Such registration, however, does not imply a certain level of skill or training. This release has been prepared for informational purposes and to announce a prior event, and nothing herein should be construed as an offer of investment advisory services or as an offer to sell or a solicitation of an offer to purchase any securities or investment product. All offers of investment interests in any fund or investment vehicle managed directly or indirectly by Advantage Capital are and will be made only to qualified prospective investors pursuant to separate and definitive offering and subscription documents in accordance with applicable federal and state securities laws. Advantage Capital is an equal opportunity provider. The portfolio companies referenced herein represent a sample of Advantage Capital’s investments that were selected solely to illustrate the firm’s experience making similar investments under state and federal tax credit programs. The profitability of any single investment was not a factor in the selection process. Nothing in this document should be an implication or statement that investments previously made by Advantage Capital were or are successful, or that past performance is any indication of future performance. All investments involve risk and unless otherwise stated, are not guaranteed.
