Flexible Capital Fund Invests $250,000 in WallGoldfinger
Posted on February 12, 2014
Randolph, VT – Nationally known executive furniture designer and builder, WallGoldfinger, is the newest borrower in the growing portfolio of socially responsible investments made by the Flexible Capital Fund, L3C—Vermont’s only provider of flexible risk capital in the form of royalty financing.
“The Flex Fund offers ‘equity-like’ loans creatively structured somewhere between equity investments and traditional loans for growing Vermont companies in value-added agriculture, forest products, and clean technology,” explains Janice St. Onge, president of the Flexible Capital Fund, L3C (The Flex Fund). “WallGoldfinger’s commitment to supporting Vermont’s working landscape as a part of their growth and adding jobs to the wood products market sector aligns with our mission. We are able to leverage a flexible repayment schedule that doesn’t force an exit or take ownership the way an equity investment does. Our innovative financing is repaid based on growing revenues and focuses on the long term impact of building resilient communities.”
WallGoldfinger suffered an economic downturn due to the 2009 recession followed by the devastation of spring flooding and Tropical Storm Irene in 2011—which completely destroyed the main floor of the WallGoldfinger factory in Northfield. With the help of multiple financial partners and sound management of cash flow, WallGoldfinger was able to relocate and rebuild the factory with new state-of-the-art equipment in the old Ethan Allen facility in Randolph.
The $250,000 investment from the Flex Fund will provide working capital needed to redesign and market product lines, finish refurbishing their New York City showroom, and improve collateral materials and website features. The anticipated growth provided from the Flex Fund investment should help them continue to increase revenues and eventually grow the full-time employee base by 50%. In addition to its financial investment, the Flex Fund also provides non-financial support through peer-to-peer network resources, mentorships, and technical assistance.
“The Flex Fund will be a very important partner as we grow into the capacity of our new facility. WallGoldfinger survived the Great Recession and the Irene flood and is now poised for growth. The Flex Fund is providing financial help and resources at a critical point in our development,” comments John Wall, president and CEO of WallGoldfinger.
WallGoldfinger’s anticipated growth will further support the preservation and supply chain of Vermont and the region’s working landscape. WallGoldfinger is promoting and using white marble from Danby, purchased by a local vendor. As an FSC (Forest Stewardship Council) certified manufacturer, WallGoldfinger is intentional about sourcing from sustainable, and local sources as available, including Vermont and New England lumber and veneer from suppliers.
Green hardwood chips from Bristol, Vermont heat the 60,000 square foot facility and a strongcommitment to environmental stewardship has earned WallGoldfinger a Governor’s Award for Pollution Prevention.
Founded in 1971, WallGoldfinger designs, engineers, manufactures, and installs custom executive furniture for corporate, institutional, and government decision makers in collaboration with leading architects. Nationally known for their work with Fortune 500 corporations, leading financial and insurance institutions, large law firms, and universities and government agencies, WallGoldfinger clients include the White House, New York Stock Exchange, International Monetary Fund, and the United Nations. www.wallgoldfinger.com
In Vermont’s growing pool of socially responsible investment options, the Flexible Capital Fund, L3Cprovides flexible risk capital to Vermont food, forestry, renewable energy, waste management, and environmental technology companies. The Flex Fund seeks not only a fair return on its financial investment, but is equally focused on the social and environmental impact borrowers have in building healthy food systems, re-localizing energy resources, and creating resilient communities. The Flex Fund is managed by the Vermont Sustainable Jobs Fund, a non-profit organization charged with developing Vermont’s sustainable agriculture, renewable energy, and forest product businesses. www.vsjf.org/what-we-do/flexible-capital-fund