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Minority venture capital fund cutting back
Saturday, May 22, 1999 By Dan Fitzpatrick, Post-Gazette Staff Writer
After making four investments in six years, the Keystone Minority Capital Fund is fading away.
The only venture capital fund in Western Pennsylvania to invest solely in minority-owned businesses, Keystone has decided to make one more investment this year of $300,000-$500,000. After that, Keystone will continue to monitor its investments, but is not expected to pursue additional funding.
Earlier this month, Keystone managing general partner Earl Hord moved the fund's files and accounting records from Williams Square in the Hill District to American Micrographics' offices in Monroeville. American Micrographics executive Rendell Harper is one of the fund's general partners. The other is Allegheny Housing Rehabilitation Corp. leader Milt Washington.
"It does not make sense to hold an office open to do what we are doing," Hord said. "It makes more sense to consolidate operations."
Because of the move, Hord's secretary has retired and another employee who handled Keystone's financial analysis has left for another job.
"Everyone has a right to slow down at some point in their life," Hord said. "You do the best you can do. I am not ashamed or apologetic about what has happened here."
Hord, founder of the Minority Enterprise Corp., left MEC in 1996 to run Keystone full time. The fund, launched in 1993, began with $5.2 million. The companies that received money from Keystone include TriLogic Corp. in Canonsburg, Antaire Corp. in the Hill District, Choice Media Group on the South Side and Homewood-based Yellow Binder Book Entry.
Hord could not say yesterday how much money went to each company. He declined to discuss the fund's last investment of $300,000-$500,000 because the deal is not final.
Keystone's investors include the city's Urban Redevelopment Authority, Mellon Bank, PNC Bank, Duquesne Light, Dollar Bank, UPMC Health System and several foundations.
Hord, Harper and Washington also helped with early financing. Their goal was to raise $8-10 million, but a state pension fund that promised $2.5 million reneged on its commitment, Hord said. That caused other potential investors to pull back, too.
Keystone will keep a reserve fund to help its companies grow further. Also, Harper and Washington could decide to seek a second round of financing.
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