L3C Advisors

L3C Advisors L3C is the first L3C created in the world and was organized to help others organize and finance L3Cs. The L3C is a for profit venture that under its state charter must have a primary goal of performing a socially beneficial purpose, not maximizing income. The L3C facilitates Program Related Investments (PRIs) by foundations and facilitates tranched investing with the PRI usually taking the first risk position, thereby taking much of the risk out of the venture for other investors in lower tranches. Because the foundations take the highest risk at little or not return, it essentially turns the venture capital model on its head and gives many social enterprises a low enough cost of capital that they are able to be self-sustainable. Michigan's L3C legislation became law in January 2009.