Lunch with John MacIntosh of SeaChange Capital Partners

20150204

The Lodestar Foundation has been partnering with New York based SeaChange Capital Partners for several years to support/encourage nonprofit collaborations. John MacIntosh, lead partner with SeaChange Capital Partners, was in Phoenix on Feb. 4th  to teach members more about funder collaboratives and nonprofit collaborations.

About John MacIntosh

John leads SeaChange Capital Partners with overall responsibility for managing its grant-making, investment, advisory services, and market-making efforts. He also explores new roles SeaChange might play to help nonprofits have more impact while giving donors leveraged funding opportunities. Prior to joining SeaChange, John was a partner at Warburg Pincus in that global private equity firm’s New York, Tokyo, and London offices. At Warburg Pincus, he was responsible for overseeing the firm’s expansion into several new international markets and industry segments, designed the firm’s investment performance and measurement system, was co-head of professional development, and served as a director of 16 companies, public and private. Earlier in his career John worked as a software engineer in Tokyo and a management consultant at Oliver Wyman.

About SeaChange Capital Partners
SeaChange Capital Partners is a nonprofit providing select merchant banking services seeking to enable transactions that increase the impact of nonprofits while also offering very attractive opportunities for donors. Over time, they have become involved in an increasing range of transaction types including: mergers, acquisitions, alliances, joint ventures and other types of formal, long-term collaborations. A partial list of the projects sponsored by SeaChange Capital Partners is listed below:

  • In 2008, they raised the Catalyst Fund to facilitate the flow of growth capital into a select group of high-performing nonprofits working in education and youth development with the opportunity, capacity, and ambition to increase their impact significantly. During 2008-2010, the Catalyst Fund arranged four financings totaling $18.0 million for the New Teacher Center, Uncommon Schools, College Summit, and the Pathways Fund. The last Catalyst Fund financing will be finished in 2015.
  • In 2009, they expanded into nonprofit mergers and collaborations through the SeaChange-Lodestar Fund for Nonprofit Collaboration, a partnership between SeaChange and The Lodestar Foundation, which has long been the pioneer in this area. The fund makes grants to encourage and support nonprofits in exploring or completing mergers, acquisitions, joint-ventures, and other formal, long-term collaborative transactions. The fund has evaluated about 275 opportunities and made more than 65 grants spanning many sectors and geographies. They’ve also worked to build the field of nonprofit “M&C” by convening funders active in the area and have been deeply involved in the design of a new fund (not being managed by SeaChange) that may soon launch in Philadelphia.
  • In 2012, they expanded their mergers and collaborations work by launching the New York Merger, Acquisition, and Collaboration Fund (“NYMAC”) together with five leading NYC-focused foundations (The Altman Foundation, The Booth Ferris Foundation, The Clark Foundation, The Heckscher Foundation for Children, and The New York Community Trust), The Lodestar Foundation, and a handful of committed and connected New York philanthropists. NYMAC has evaluated more than 95 transaction opportunities and made 22 grants across multiple sectors.
  • Last year, they became a provider of flexible, high-impact credit to New York nonprofits through an alliance with the Contact Fund. The Contact Fund makes loans to support the real estate, working capital, and expansion capital needs of nonprofits working on behalf of low-income New Yorkers in situations requiring a level of flexibility generally unavailable from conventional lenders. Since inception, the Contact Fund has made 26 loans, of which 15 are currently in the portfolio. The Contact Fund is funded by 61 high-net-worth, socially-motivated investors who have bought notes (currently paying 2.5% interest) from Contact Fund or have made a donation through a donor-advised fund managed by SeaChange.
  • In December 2014, they launched the New York Pooled PRI Fund (“NYPRI”), a collective effort by SeaChange, The Altman Foundation, The Heckscher Foundation for Children, The Thompson Family Foundation, and one private family foundation to make flexible, high-impact investments to organizations working with and on behalf of low-income New Yorkers. The fund targets investments from $250,000 to $750,000 in the form of secured and unsecured loans, loan guarantees, equity, and equity-like securities in three areas: real estate, working capital, and expansion capital. Each investment made by the fund can qualify as a program-related investment (“PRI”) for its participants.