The White House recently announced that it has launched the Drive Forward Fund LP which seeks to raise up to $1 billion and focus on investing in companies that play a pivotal role in fueling growth and innovation within the $1 trillion U.S. automotive industry.
In collaboration with Monroe Capital LLC, the White House will develop a first-of-its-kind investment strategy that focuses on supporting businesses operating in the U.S. automotive supply chain. The strategy will also support small and medium-sized companies operating within the automotive value chain that are essential to the growth and modernization of the U.S. automotive industry.
In addition, the Drive Forward Fund LP will target suppliers and manufacturers, as well as other adjacent businesses that provide complementary products and services to the industry.
Supporting supply of critical parts
The Drive Forward Fund LP’s mission is to provide financial support to the businesses that supply mission critical parts such as powertrain, body, drivetrain, chassis, interiors, and electrical components, as well as complementary Software-as-a-Service (SaaS) and other auto technology and business service providers that cater to the industry.
The fund will also evaluate growth opportunities to invest in innovative companies in battery component and subcomponent manufacturing and materials recycling.
“We believe this new Drive Forward Fund will be critical to catalyzing growth and innovation within America’s automotive supply chain,” said Monroe’s chairman and CEO Ted Koenig.
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Advancing clean vehicle supply chain
Building on the announcement Vice President Harris issued in Detroit in May supporting growth and jobs in the automotive industry, Monroe will seek to provide capital solutions to help manufacturers, suppliers, and service providers modernize the key automotive supply chains. This includes the clean vehicle supply chain and investments in the transition from internal combustion production to electric vehicles (EVs).
The Drive Forward Fund LP’s investments seek not only to allow these businesses to capitalize on the industry’s compelling growth tailwinds but also to navigate supply chain challenges and the rapidly evolving operating landscape.
“We believe a shift towards clean energy and sustainable vehicles can play a role in efforts to reduce carbon emissions and create a more durable supply base for the OEMs and Tier I suppliers. This Drive Forward Fund expects to play a pivotal role in supporting these technological innovations, to help ensure that the U.S. remains at the forefront of automotive technology and manufacturing,” added Alex Parmacek, portfolio manager for the fund at Monroe.
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