Key Takeaways
- • Epicenter, a Memphis-based venture capital nonprofit, has requested $10 million allocations from both Memphis and Shelby County pension funds to capitalize a new investment vehicle already seeded with $10 million from FedEx Corp.
- • Epicenter has raised approximately $40 million to date and targets a $100 million fund to support 1,000 entrepreneurs by 2025, with specific focus on 500 newly launched firms.
- • Both city and county officials have referred Epicenter's pension investment request to independent advisers—Wilshire Associates (county) and an unnamed Memphis adviser (city)—for formal evaluation of the fund's management capability, investment strategy, and fiduciary suitability.
- • Memphis' municipal pension fund exceeds $2 billion in assets, currently allocated among multiple private investment managers; Shelby County's pension structure mirrors this diversified approach, creating meaningful capacity for alternative allocations.
- • The evaluation timeline remains open-ended, with no formal decision date announced; Shelby County Mayor Lee Harris expressed general support for pension-backed local investment but deferred to adviser recommendations on prudence and risk assessment.
Summary
Epicenter, a Memphis nonprofit venture capital organization spun from the Greater Memphis Chamber's Chairman's Circle in 2014, is seeking to tap municipal and county pension resources to expand its investment capacity. The organization has formally requested $10 million from both Memphis and Shelby County pension funds to participate in a new venture capital pool. According to Epicenter President Leslie Lynn Smith, the fund has already secured $10 million in seed capital from FedEx Corp. and has raised approximately $40 million total, with an eventual target of $100 million to deploy across local entrepreneur investments.
Epicenter's stated mission centers on supporting 1,000 entrepreneurs by 2025, including 500 newly established companies. The organization emerged from the Chamber's 2014 "moon missions" strategic framework, positioning itself as a vehicle for economic development and job creation within the Memphis metropolitan area. Both city and county leadership have acknowledged the request but have appropriately tasked independent fiduciaries with evaluating the proposal before committing pension assets.
Shelby County Mayor Lee Harris confirmed that the request was referred to pension adviser Wilshire Associates for technical and strategic assessment. Memphis Mayor Jim Strickland's office similarly engaged an investment adviser to evaluate Epicenter's request. These advisers are expected to analyze Epicenter's management team, investment strategy, fund governance, and operational capacity to oversee venture capital allocations responsibly. Harris noted uncertainty about the timeline for adviser recommendations and stated that while investing local pension capital in Memphis-based businesses with job creation potential "seems fine," the final decision rests on fiduciary compliance and risk evaluation.
The Memphis municipal pension fund holds over $2 billion in assets, diversified among multiple private investment managers responsible for equities, fixed income, and alternative assets. The county pension fund operates under a similar allocation structure. Any commitment to Epicenter would represent a meaningful but measured reallocation of existing diversified portfolios. Harris has previously pursued inclusion of Memphis-based Preserver Partners in the county's manager roster, suggesting openness to local investment exposure, though each such commitment requires formal adviser review and governance approval.
No formal decision timeline has been announced, and the evaluation process remains preliminary pending adviser recommendations.
Epicenter's stated mission centers on supporting 1,000 entrepreneurs by 2025, including 500 newly established companies. The organization emerged from the Chamber's 2014 "moon missions" strategic framework, positioning itself as a vehicle for economic development and job creation within the Memphis metropolitan area. Both city and county leadership have acknowledged the request but have appropriately tasked independent fiduciaries with evaluating the proposal before committing pension assets.
Shelby County Mayor Lee Harris confirmed that the request was referred to pension adviser Wilshire Associates for technical and strategic assessment. Memphis Mayor Jim Strickland's office similarly engaged an investment adviser to evaluate Epicenter's request. These advisers are expected to analyze Epicenter's management team, investment strategy, fund governance, and operational capacity to oversee venture capital allocations responsibly. Harris noted uncertainty about the timeline for adviser recommendations and stated that while investing local pension capital in Memphis-based businesses with job creation potential "seems fine," the final decision rests on fiduciary compliance and risk evaluation.
The Memphis municipal pension fund holds over $2 billion in assets, diversified among multiple private investment managers responsible for equities, fixed income, and alternative assets. The county pension fund operates under a similar allocation structure. Any commitment to Epicenter would represent a meaningful but measured reallocation of existing diversified portfolios. Harris has previously pursued inclusion of Memphis-based Preserver Partners in the county's manager roster, suggesting openness to local investment exposure, though each such commitment requires formal adviser review and governance approval.
No formal decision timeline has been announced, and the evaluation process remains preliminary pending adviser recommendations.
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