In the wake of Hurricane Katrina’s devastation, Crescent Growth Capital emerged as a pivotal player in New Orleans’ recovery. The company’s story is deeply intertwined with the city’s resilience, founded with the mission of bridging funding gaps for transformative projects in the region. Crescent’s Director, Frank Rabalais, recounts how the firm seized an opportunity created by federal initiatives in the aftermath of the storm.
“The timing was perfect,” Rabalais shared. “The need for rebuilding and reinvestment was enormous, and few people understood how to incorporate New Markets Tax Credits into a capital stack. We stepped in to fill that gap.”
Since its inception in 2008, Crescent Growth Capital has evolved into a national powerhouse, structuring over $2.25 billion in financing for projects across the United States. Yet, its heart remains in New Orleans, where the company has played a vital role in bringing ambitious ideas to life, transforming them from concepts into tangible realities.
A Mission Rooted in Impact
At its core, Crescent Growth Capital aims to complete a project’s capital stack by sourcing, modeling, and integrating tax credit equity. This mission aligns with the unique business landscape of New Orleans, where innovative ideas often outpace available funding.
“Projects in Greater New Orleans frequently struggle to assemble the capital to get off the ground,” Rabalais explained. “Crescent often provides the decisive final funding component that transforms a sound concept into a completed project on the ground.”
One standout example is the New Orleans Culinary & Hospitality Institute (NOCHI). Rabalais described how Crescent structured and closed the financing for this game-changing institution, which has since become a hub for culinary arts, small business incubation, and thought leadership. NOCHI’s creation illustrates the transformative power of tax credit equity and community collaboration, offering a blueprint for future projects in the city.
Adapting to Change and Expanding Horizons
While Crescent Growth Capital’s roots are firmly planted in New Orleans, its evolution has been shaped by necessity and opportunity. By 2010, the national focus on Katrina recovery had waned, leading to what Rabalais calls “Katrina fatigue.” Recognizing this shift, Crescent began expanding its footprint beyond Louisiana, applying its expertise in New Markets Tax Credits and Historic Tax Credits to projects across the country.
This strategic pivot was bolstered by a deepened commitment to historic preservation. Crescent became an expert in combining NMTCs with Historic Tax Credits, a specialization that has allowed the company to undertake complex, impactful projects nationwide.
Despite its national reach, Crescent remains committed to its New Orleans roots. The city’s rich history and vibrant culture continue to inspire the company’s work, even as it tackles projects in far-flung locales.
“New Orleans is one of the world’s great cities,” Rabalais noted. “While Greater New Orleans may no longer be among the most populous or economically consequential regions in America, technology and good air service allow us to home-base here. We could be headquartered anywhere, but we’ve chosen New Orleans.”
Investing in the Local Economy
Crescent Growth Capital’s contributions to New Orleans extend beyond its project portfolio. As a local business, it generates significant economic benefits and supports initiatives like Greater New Orleans, Inc., a regional economic development organization.
“We believe in their mission and have celebrated their successes over the past 20 years,” Rabalais said. “They are leading the effort to reacquire real economic significance for New Orleans, which is necessary for its future survival as a viable place to live, work, and raise a family.”
Crescent’s commitment to the city is also evident in its vision for the future. The company hopes to play a larger role in financing projects in underserved areas like New Orleans East, the Industrial Canal, and West Jefferson. These areas, often situated in low-income census tracts, represent untapped potential for economic growth and community revitalization.
Balancing Risk and Innovation
In the high-stakes world of finance, balancing risk and innovation is crucial. Crescent Growth Capital achieves this by maintaining a robust pipeline of reliable projects while pursuing more adventurous opportunities. This strategy has enabled the company to take calculated risks, pushing the boundaries of what’s possible while ensuring long-term stability.
Crescent’s focus on low-income communities and historic preservation further underscores its commitment to meaningful impact. By leveraging NMTCs and Historic Tax Credits, the company not only drives economic growth but also preserves the cultural and architectural heritage that makes cities like New Orleans unique.
Looking Ahead
As Crescent Growth Capital celebrates over 15 years of success, Rabalais and his team remain focused on the future. The company’s vision includes expanding its work in New Orleans and continuing to support projects that align with its mission of economic development and community enrichment.
“We help overcome our region’s diminished economic stature and capital-raising challenges with first-class funding solutions often left unexplored by businesses in the nation’s top metros,” Rabalais said.
With a proven track record, a deep connection to its hometown, and a commitment to innovation, Crescent Growth Capital stands as a beacon of possibility in the ever-changing landscape of New Orleans and beyond. Its work reminds us that, with the right tools and vision, even the most daunting challenges can become opportunities for growth and transformation.
