Please note: this Investment Summary represents VPP's perspective at the time of the investment agreement, January, 2006.

In January, 2006 VPP entered into a multi-year investment partnership with the Latin American Youth Center (LAYC), a highly successful community-based organization providing academic assistance, employability development, and wraparound social services to the most at-risk Latino and multicultural youth population in a number of Washington, DC neighborhoods. Through this partnership, VPP will provide up to $1.5M in capital and significant non-financial support including management assistance and access to VPP’s network of contacts and resources to LAYC to support the organization's expansion in to Maryland. As part of its strategic business plan, the LAYC is expanding its operations into Maryland, including sites in Montgomery and Prince George’s Counties, to better meet the needs of children and youth in a demographically changing National Capital Region. This multi-site expansion effort is called the Maryland Multicultural Youth Center.

In March, 2003, VPP supported LAYC's business planning process to determine growth strategies with approximately $324,000 in funding, so VPP's total commitment to the LAYC is $1,824,191

OPPORTUNITY
VPP has an opportunity to play a significant role in supporting a well-respected community leader to effectively expand programs and services to needy populations in Maryland. The partnership framework that has been laid between the Archdiocese of Washington and key stakeholders in the community is significant and is gaining momentum. The initial focus on the Langley Park expansion to the Mother Teresa Center has heightened the need/awareness for LAYC services in Montgomery County, with positive results. Plans are now taking shape to work with both Prince George’s and Montgomery Counties, in collaboration with the Archdiocese of Washington, for the delivery of services with broader regional impact. A multi-year strategic investment and partnership with LAYC would provide the capital and strategic assistance necessary to guide the regional expansion of a DC-based, multi-service organization.

Accomplishing LAYC’s goals for growth and expansion will firmly place the institution as a regional leader in developing and delivering highly effective multicultural support services to the under-served youth of this area. The partnership with the Archdiocese of Washington, in collaboration with other regional stakeholders, could serve as a model for the successful expansion of support services, across geographic boundaries, for the neediest populations of the region.

INVESTMENT RATIONALE
Key factors that underpin the thinking behind an investment in LAYC include:

1. Leadership: Lori Kaplan is a proven leader who has accomplished much for LAYC. She is considered one of the top non-profit leaders in the region. Over the past year Lori has elevated her thinking and become much more of a strategically opportunistic leader, developing explicit criteria for screening growth opportunities. The business planning process has been very helpful to Lori, her management team and board to identify prerequisites for successful growth.

2. Outcomes Focus: The LAYC is one of few youth serving organizations in the region with a senior level person dedicated exclusively to outcomes measurement. Isaac Castillo was hired in February 2005 to implement an effective outcomes measurement discipline and system within the LAYC family of organizations. Isaac has a very strong background in program evaluation and outcome measurement across a variety of youth development areas including: education, health, gang and violence prevention, substance abuse prevention, and life skills development. In a very short time frame Isaac has focused advanced the definition of outcomes for youth through the on the LAYC’s Social Change Model, and has begun to lay the framework to integrate effective outcomes-based programming and measurement systems within the organization.

3. Leverage: The LAYC’s partnership with the Archdiocese of Washington is laying new ground for faith based and community based organization collaboration. The Archdiocese has brokered meetings on behalf of the LAYC with Cardinal McCarrick, Senator Mikulski, County Executive Duncan and other political and civic leaders. By investing in the LAYC, VPP has the opportunity to leverage the LAYC’s partnership with the Archdiocese of Washington, one of the strongest proponents of community development and social justice for low-income and marginalized youth and their families. Based on feedback from representatives of the Archdiocese, the partnership with the LAYC sets precedence in the Diocesan network, and they would like to expand the model to other communities in the country.

SUCCESS FACTORS
1. Management Team & Board: Lori has assembled one of the most high performing management teams in the region, including a new Managing Director for DC, Maryland Managing Director, Director for Learning and Evaluation, Director for Development, Director of Creative Enterprises, and Chief Financial Officer. The strength of the LAYC board of directors is exceptional. Over the past year Lori has repopulated her board of directors with 12 new directors, representing the skill set and geographic mix needed to represent the region. The board of the LAYC has also established a Maryland Advisory Committee responsible for making recommendations and providing background for Maryland related board decisions.

2. Fiscal Sustainability: Through the business planning process, a rational plan to fund the LAYC’s expansion was developed. LAYC has deployed a full time, senior level development person to exploit a diversified funding pool of resources. The LAYC has implemented a rather aggressive approach to fundraising, recognizing the importance of a diverse funding base.

3. Community support: LAYC has strong support in many communities in DC, including its service recipients and their families, the broader Latino community, foundations, local government and corporate communities. These supporters will help ensure LAYC’s success over the long-term, and help ensure that organization remains a viable and prosperous entity.

USE OF FUNDS
VPP’s investment capital of $1.5 million will be available to: 1) support the LAYC’s expansion into Maryland; 2) implement an outcomes-based programming model and measurement discipline, organization-wide; and 3) provide the management/functional infrastructure to effectively run a multi-site, regional organization.