NEW YORK CITY—Eric Clement recently joined the New York City Economic Development Corp. as senior VP and the head of the strategic Investments group. He had been a partner at Blue Frontier Group, a private equity firm that he co-founded which invested assets in emerging markets, primarily in South Africa and Australia. He brings experience of investing in businesses and using the profits to reinvest back into communities.

In a GlobeSt.com interview, Clement explains his team's role at NYCEDC. “We aim to find initiatives that are important to the city, whether that's investing in a life sciences hub or a tech hub—businesses we'd like to attract to New York City,” says Clement. “EDC is all things economic development.” Both tax dollars and profits from EDC investments are invested in New York City's communities.

Clement highlights examples of how the strategic investments team advances EDC's mission to increase shared prosperity across the five boroughs, by supporting neighborhoods and creating good jobs.

The strategic investments group provides discretionary tax incentives for strategic industries and businesses through the New York City Industrial Development Agency. The IDA has the ability to abate taxes to grow and retain strategic businesses and industries in New York City. As examples, Clement referenced Manhattan's east side medical corridor, with the Alexandria Center for Life Sciences located on city-owned property, and the city's role in bringing craft beer maker Transmitter Brewing to Navy Yard's Building 77.

The team works with Build NYC Resource Corporation, the only section in EDC that has the authority to issue debt. Build NYC issues tax-exempt bonds for non-profit entities such as museums, hospitals, senior living facilities, schools and other places that provide public services. Clement notes 501(c)(3) entities are eligible to receive cheaper financing, debt at much lower interest rates.

EDC established the New York City Neighborhood Capital Corporation as a subsidiary, and as a community development financial institution, it can apply for tax credits. In 2017, EDC was allocated $55 million in tax credits. “We sell those tax credits to financial institutions for equity and with the equity we receive, we then take that money to provide low interest loans,” says Clement.

This means loans with interest rates as low as 1% for people or entities wanting to invest in low income communities. As examples, last year, low interest loans went to the Rockaway Beach Medical Arts Center, the Madison Square Boys and Girls School in Harlem and a Village ShopRite.

Clement has held leadership positions at SGI Global Holdings and Accenture. He also worked at Citigroup and JPMorgan. He accepted the position noting the unique opportunities EDC provides in the diversity of the work. “I get to look at real estate transactions. I get to look at repositioning contracts, venture capital and private equity,” says Clement. “There is a feel-good component with colleagues who want to be really good at their jobs but also want to do good for the community at large.”

Instant Insights /

NYCEDC Hires New Senior VP and Head of Strategic Investments Group

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