Philanthropic Private Equity
Business Plan
Spring Arbor Group is a mission-driven private equity firm combining financial returns with philanthropic impact. By partnering with charities and nonprofits, we generate sustainable revenue streams through acquisitions of cash-flowing businesses. Our model allows donors to support causes while retaining ownership of their assets.
The opportunity is clear: 10,000 baby boomers retire daily, leaving millions of small businesses in need of new ownership. These businesses represent untapped potential. By revitalizing them, we generate value for both investors and charitable partners. Our customer base includes charitable organizations, Christian educational institutions, and impact-driven investors.
Competitive Advantage
Spring Arbor Group is the only private equity firm offering investors a charitable gift receipt embedded in its operating agreement. This unique structure combines philanthropic giving with financial returns, appealing to socially conscious investors.
We focus on acquiring overlooked businesses at the lower end of the market. Larger firms often pass on these opportunities, leaving room for us to add value and drive cash flow. This strategy ensures consistent returns and supports long-term philanthropic goals.
Traction
Spring Arbor Group manages two funds and five portfolio companies. We have secured over 50 unique investors, demonstrating confidence in our approach. Each acquisition delivers recurring revenue, directly benefiting our charitable partners.
These results highlight the scalability of our model. As our portfolio grows, we continue to validate the success of combining private equity with philanthropy.
Why Now
The timing is ideal. With millions of baby boomers set to retire, over 12 million businesses valued at $10 trillion are expected to change ownership. This market shift creates an unprecedented opportunity for acquisition-focused private equity firms like Spring Arbor Group.
Traditional fundraising methods are also losing effectiveness. Donors face fatigue, and retention rates are declining. Our model offers a fresh solution by transforming businesses into sustainable revenue sources for charities.
Economic conditions favor private equity investments in undervalued, cash-flowing businesses. Societal trends show increasing demand for impact-driven investments that align financial returns with purpose.
Why This Industry
Private equity is evolving. Investors increasingly seek opportunities that generate measurable social and financial outcomes. Spring Arbor Group leads this shift with a model that revitalizes small businesses and channels profits into philanthropy.
Small businesses, particularly those owned by retiring baby boomers, are often underserved. By acquiring and managing these businesses, we unlock their potential while creating long-term value for charities and investors.
Team
Ken Johnson: 40+ years of experience building businesses across telecommunications, logistics, and financial services.
Greg Schupra: Nationally recognized leader in philanthropic planning; established a charitable trust division for a major bank.
Lee Burnstein: Startup and VC expert with decades of operational experience, including revitalizing Detroit’s startup ecosystem.
Jon Bahr: Client relations leader with a proven record in sales and customer satisfaction across industries.
Deal Terms
Funding Target: $5M for a single-entity fund; $20M for a blind fund.
Minimum Investment: $50K for the single-entity fund; $200K for the blind fund.
Use of Funds:
Single-Entity Fund: Acquire a stable, cash-flowing business to generate immediate revenue.
Blind Fund: Diversify investments across 4-6 businesses for long-term scalability.
Exit Strategy: Investment horizons are Q1 2025 for the single-entity fund and Q3 2025 for the blind fund, with clear plans for consistent returns and future exit opportunities.
