♪ ♪ ♪ >> Minorities need to be more invested in Wall Street.

Shawn Rochester and Robin Watkins are leading the way with a new IPO -- Minority Equality Opportunities Acquisition, Inc., next on "The Chavis Chronicles."

>> Major funding for "The Chavis Chronicles" is provided by... Reynolds American, dedicated to building a better tomorrow for our employees and communities.

Reynolds stands against racism and discrimination in all forms and is committed to building a more diverse and inclusive workplace.

American Petroleum Institute.

Through the core elements of API's Energy Excellence program, our members are committed to accelerating safety, environmental, and sustainability progress throughout the natural-gas and oil industry in the U.S. and around the world.

You can learn more at api.org/apienergyexcellence.

Over the next 10 years, Comcast is committing $1 billion to reach 50 million low-income Americans with the tools and resources they need to be ready for anything.

Additional funding provided by Pfizer.

♪ ♪ >> A special purpose acquisition company, or SPAC, is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, making it public while avoiding the traditional initial public offerings process.

Minority Equality Opportunities Acquisition, Inc., or any MEOAU, is the first minority-led SPAC listed on the Nasdaq Capital Market.

>> We are so pleased to welcome to "The Chavis Chronicles" Robin Watkins and Shawn Rochester.

You have a brand-new company, Minority Equality Opportunities Acquisition.

What is a SPAC company?

>> A SPAC is a special purpose acquisition company that is funded through an IPO.

We raise capital through an IPO.

And with that money, the funds that are raised, they are held in trust, with the goal of acquiring another company.

In this case, we are looking at minority business enterprise.

And so it is our goal to fund a minority business enterprise and take them public through our IPO.

>> There are not that many African-American majority-owned SPAC companies.

>> No.

In fact, we are the only SPAC that is targeting minority business enterprise.

I believe there is one other SPAC in the market right now that is not in particular just targeting minority business enterprise, but they have an interest in minority business, as well.

>> And so, Robin, you are the CFO.

>> I am.

>> Chief Financial Officer.

>> Yes, I am.

>> And, Shawn, you are the CEO.

>> Yes, I am.

>> Chief Executive Officer.

Tell me, first of all, I understand you're a native of Barbados.

>> Yeah.

I was originally born in Barbados and came up here when I was really young and lived between Barbados and New York City.

So I had the benefit of both the U.S. and a British kind of base education system.

>> How did you get involved in financial services?

>> I've always wanted to be a business owner.

I had a great interest in engineering, so I started off in engineering.

I saw the impact that mergers acquisitions had on companies and workforce, and I wanted to get a deeper understanding of that.

So I went into, you know, business school.

Chicago Booth, got my MBA there, worked in mergers and acquisitions and strategy for a number of years and, you know, all over the world, I then eventually moved into the space that we're into now.

>> Mergers and acquisitions.

>> [ Chuckles ] Yeah.

>> That's a big topic.

And, again, we certainly need more African-Americans and other people of color involved in major mergers and acquisitions.

So, Robin, you're from the greater Washington area.

Where are you from?

>> I am.

I was born in D.C. and raised in the Silver Spring area.

Went to Drexel University for college, took the CPA exam, and have been working over the past 25 years or so in internal controls, financial management, risk management.

>> Okay.

So, you both have extensive experience in financial services, in the sector.

When people talk about Wall Street, you know, a lot of African-Americans are just learning about investments and stocks and bonds, and now you're involved in mergers and acquisitions.

What brought the two of you together?

>> It really started from a vision that our sponsor had.

Every SPAC as a sponsor, who's the person or entity or organization that puts up the resources so that we can actually take the company public and raise capital.

And they were really focused and excited about "How do we even have a real impact on economic transformation?"

And the best way to do that, as you know, is through economics.

And this SPAC was seen as a vehicle that they could use to do that.

So it was about choosing a great board of director and choosing a great management team.

We are familiar with the team that put everything together, and they're familiar with our backgrounds in finance and acquisitions, internal controls.

And, you know, they told us about it.

It was exciting for both of us.

It's consistent with my belief system and what I've spent years and years doing, in terms of trying to find creative ways to be able to close the wealth gap.

And it really just made perfect sense that we use this vehicle.

>> I want to dig a little deeper on your journey, both of your journeys that brought you to this point.

Very significant point.

I think the IPO that you just raised was $126 million?

>> That's right.

>> That's quite an achievement.

>> It is.

It's historic.

>> And this is on Nasdaq?

>> Yeah.

So we're traded on Nasdaq -- MEOAU is our letters on Nasdaq.

We were very excited.

So, our target raise was $100 million, right?

As you know, we got a really strong feedback from the marketplace, so we took that up to $110 million, and then we oversubscribed, which means we had more demand, right?

It took us up further, to $126.5 million.

So it was terrific that we had such a strong reaction from the marketplace in a relatively soft market.

So that says a lot about what investors think about what we're doing.

>> So tell us, what has been the response since you've raised the money?

>> Well, clearly, the marketplace responded -- right?

-- by putting up the resources above and beyond what we were even looking for, which is the type of response and probably the most important response we were looking for.

But also just, you know, the communities that we are a part of, in seeing that this is not only possible, but that it happens in an unprecedented way, it's been -- it's been fantastic.

People are very excited about us being able to raise this kind of resource and the implications of what it could mean for the right business and for the right management team.

>> What will you be able to do ultimately with the success of your mergers and acquisitions?

>> We raised about $126.5 million, and SPACs, in general, typically will look for companies that are a multiple of what they raised in IPO.

So the range or the size of companies that we're looking for are the really large MBEs.

So, between, you know, call it 250 or so million dollars -- >> Explain what MBE is for our audience.

>> Oh, yeah So, an MBE is a minority business enterprise.

So that's black enterprise, it's, you know, Hispanic or Latino businesses, Asian business, Native American businesses.

Together, they combine this broader category that they call MBEs.

So, within that category, we're looking for businesses between 250 or so million dollars of total value and $500 million of total value.

So large businesses.

And we're looking across industry and across sector.

So we're excited about businesses that are in the fintech space.

We're looking at businesses in automotive or food production, distribution, or travel, transportation -- lots of different businesses.

We're agnostic of the industry.

We're just looking for great teams.

We're looking for well-positioned businesses.

But the most powerful thing is that finding the right team and doing a business combination is just a fancy word for the type of merger or acquisition that we would wind up doing.

Gives them access to the money that's in our vehicle, which is substantial, as you know.

And now they become public as a result of combining with us, and that allows them to access capital in the public markets.

>> Robin, you are part of this team.

>> I am.

>> Tell me how it feels to be, as an African-American woman, to be part of a team that's making history on Wall Street.

>> It feels amazing.

I -- Part of the reason that I joined this team or, you know, when I was presented with the opportunity to be a part of this team, I really jumped at the opportunity.

Mainly, I support black businesses and have for a long time.

I come from a family of entrepreneurs.

My grandfather owned a trucking company as well as a café.

My father, after he -- >> What was your grandfather's name?

>> Norfleet Spence.

>> Okay.

>> It was called Spence Trucking and, I believe, Spence Café in Lawrenceville, Virginia.

But, yeah.

And my dad also is an entrepreneur, and I also come from a family of doctors and lawyers who also have their small businesses.

So when this opportunity to actually take a minority business enterprise public came my way, I jumped at the opportunity to be a part of this amazing team.

Just realizing that there are only eight publicly traded companies, this is major and historic, and I wanted to be a part of it.

>> Well, congratulations on your initial success.

I first heard about you from Jarvis Stewart, who was a African-American leader here in the D.C. area that also kind of forecast how businesses should be expanding and growing.

Tell us about your relationship with Jarvis.

>> He's the CEO and chairman of a black-owned company here in D.C.

When our sponsor, whose name is Peter Tassiopoulos, was thinking about how could he effect change in a transformative way.

One of the first things that he did was reach out to Jarvis, and they had this conversation about how do you really drive capital to minority businesses in a transformative way.

And that initial conversation sparked the discussion and eventually the whole journey about using special purpose acquisition companies, these SPACs -- right?

-- as the best method to do so.

You know, we both individually go back with Jarvis, you know, years because, as you know, Jarvis knows everyone and is really well-connected and is always trying to empower and advance.

>> He's the entrepreneur entrepreneur.

>> He is, absolutely.

So we're very excited about that conversation.

We're also very excited about our relationship with him and that this was consistent with our value systems -- right?

-- and our beliefs.

>> So how do we bridge the wealth gap in America, particularly from your perspective?

>> Our goal is to acquire one, maybe two, targets within that $250 million to $500 million range, valuation range.

And so -- And part of that is giving them the capital to grow and to build their own community.

>> We have the pause when we say the wealth gap -- right?

-- because people kind of throw that term around, not knowing the enormity of it.

So the wealth gap is about $14 trillion.

>> $14 trillion.

>> Yeah, it's $841,000 per family times 17 million black families is $14 trillion.

So it's an enormous gap.

So we have to have a compendium of solutions to be able to close it.

One of those solutions is making sure that we have more startup businesses and those businesses are able to grow into larger businesses.

That's terrific.

That's important.

Another solution is, we have to find ways to acquire into the supply chain.

It's what we're excited about because this vehicle allows us to be able to do that.

One, you give growth businesses the capital that they need to grow.

Items one through five, from our perspective, is, you need access to capital.

You need the capital itself.

Then you can wrap the support services and the relationships and the contracts and everything else around that.

We also have to remember that these businesses, they have their own supply chains so they can include more diverse businesses and all-black businesses within those supply chains.

They have strong balance sheets so they can provide liquidity in black and other disadvantaged communities.

And diverse businesses and black businesses tend to have diverse employees.

So as they're investing in their own teams, they're amplifying opportunities for people to be in the workforce.

So there's like a four-tier multiplier effect associated with it.

But the most important thing is the signal, or an important thing, to the marketplace that there's value in companies and teams that they didn't perceive value in before.

So what's important is that we do a terrific job, you know, with what -- with this historic move so that it inspires others -- right?

-- other sponsors and other capital providers to look at this MBE space so that our $126 million can spark billions to move into it.

Now you start to see the real transformation.

>> What is the next step in your journey to help bridge the wealth gap in Black America?

>> It's really, you know -- It's finding the right company and the right team to do the business combination with, and that's what we're excited about.

You know, we're excited about the companies in our purview and those that are being kind of added to that on a daily basis because people obviously reaching out and telling us about lots of different and great opportunities.

But the next stage is all about finding the great target for us to do a business combination with.

And then it's to do a successful combination, take that company public, allow them to have access to the capital in our vehicle, plus the public markets, and to make sure that their positioned for exceptional growth.

>> What's your advice to young people that really want to learn the benefit of investing, learn the benefit of pooling their resources, learn the benefit of becoming entrepreneurs like yourselves?

What's your message to young people?

>> The first thing is -- I like acronyms, right?

So there's an acronym that I use called SOAL, which is stewardship, ownership, and legacy, right?

And stewardship is about, how do we handle, manage, and grow our limited resources to their best and highest use so we can drive cash flow?

So we have to operate in a way where we can save and to accumulate resources and then put ourselves in a position where we can reduce the amount of debt that we have or prevent ourselves from taking on excessive levels of debt and then really be focused on on our legacy that we want to leave.

And at the end of the day, that's all about economics.

And given that our community has 1/10 the probability of getting an inheritance versus kind of our peers, what we have is from our income -- right?

-- and how much that we can retain from that.

So the first step is save your money and do so in an aggressive way.

It's easy to say.

I know it's tough to do in a community where we -- in a world that values looking like you're doing well above actually doing well.

The second piece is really just to invest.

Generally, young people are gonna be working for someone else.

80% of companies have 401(k)s. Make sure you're maxed out in things like that.

Get the tax benefit, get the growth that is associated with it.

The company gives you money that's free.

There's no investment better than that.

So be involved in all those things.

That is the process -- right?

-- of stacking your cash.

Make sure you have the fundamentals in place and then branch out into the more exotic, risky things -- you know, Bitcoin and everything else.

>> Cryptocurrency.

>> Cryptocurrency, which I think is great, but it's at different levels.

Some people can make those investments, and if they lose money, it's not a problem.

For other people, it's devastating, right?

So you got to make sure you have the resources that are in place.

And then, business owners start with the money they have.

First source of capital is our own friends and family.

Right?

And if you don't have that, it's so much harder to start a business.

So that's just the first, most basic thing that I would say, and then there are more sophisticated things that we could talk to young folks about.

>> And I would just add, you know, I have two sons, as well.

They're 13 and 16 years old.

And so just really trying to instill in them the value of saving money.

They are also interested in investing to stack their paper.

And so taking a class on, you know, learning how to invest.

There are often classes online.

You can find YouTube videos that will instruct you on how to invest.

But really just taking the initiative to do that and to learn how to save your money, decide how much you want to invest, and you can always start small.

You know, if a stock is $10, and, you know, you can start with one -- one with this paycheck, one with the next paycheck, you know, and just really start to build your portfolio.

In addition to that, I like to invest in companies that I am in line with their mission, you know?

Or products that I like to use.

So that's a good -- a good place to start, I think, for our young folks who are interested in stacking their paper.

>> Yes.

How do you see what you're doing now in the United States having the potential to have a global impact?

You're gonna have a national impact.

But, you know, we live in an economy now, global economy.

Can you speak to the interactions between domestic and international business?

>> Yeah, I think because of the position of the U.S. as the apex economic, you know, country, military presence in the whole world, and also the position of like black culture being, like, such a dominant culture across the world, in terms of music, sports, entertainment, and everything else -- >> But it seems to me what both of you are onto now with your new company is to get involved in a sector of our economy where we are relatively few.

>> Because of that general kind of notoriety, uniqueness of what we're doing kind of echoes, and it inspires other people to do similar things.

There are other people who are thinking about doing special purpose acquisition companies to cover other parts of the diaspora and the like, which is a great thing.

A big, important thing I think is necessary is for us to always have working examples of models that other people can follow to know that these things are possible, that the magnitude and size of the race, the size of companies that we're talking about, the concentration of capital.

And then the fact that we are talking about also employing using these companies and their supply chains, if you have the right management teams, they can amplify other companies.

The next tranche of large companies are supplying these companies, so as they grow because we're working with them to be well-positioned, their leaders are going to be the next tranche of entrepreneurs.

So, over 60% of entrepreneurs, as you know, have worked in industry, developed skills, and kind of took that out on their own.

So we're having a multiplier effect there.

In addition to that, you know, I also believe in -- It's a word I call IDEA, which is intrinsic diaspora economic advancement, which is just a fancy way of saying we should be doing business across the pond.

We should be creating economic opportunities, providing capital both here and on the continent of Africa, in the Caribbean, Central/South America, because this is a win for everyone, right?

It's stimulative for job creation -- right?

-- it attracts capital.

It helps communities -- right?

-- who grow based on those economic resources there.

So, I'm with you.

We do need to take finance and economics to the forefront.

We are more than sports and entertainment and the other amazing things that we're known for.

But we got to make capital available, and we have to do it in a large way.

It's not just about passion.

There's a lot of passionate people.

It's not just about knowhow.

It's a lot of smart people.

I know you know that personally.

But do those folks get the access to the resources that they need to bring that to fruition?

And the cases is, no, they don't.

They don't get it at scale, and it's not for some deficit associated with them.

So we want to be a catalyst, right?

Because this is not aspirational.

We're doing it.

Like, the train has left the station.

It's going to happen.

And that is going to inspire lots of people to do it.

And we want that to happen.

We want to be able to share the playbook with them because we need a thousand of these and other type vehicles to be able to start to close these gaps and for everyone to start to see the benefits of it in a significant way.

>> Are we really seeing diversity, equity, and inclusion at the higher decision-making levels of the financial services industry?

Like the big banks, the investment companies, are we finding African-Americans, Latinos, Asians, Native Americans, women in decision-making positions?

>> Well, I believe that, ever since the incident with George Floyd's killing, he inspired a movement in this -- in this nation.

And with that, I am starting to see more companies really enhance their DEI -- DEI initiatives within their companies.

So, hopefully, we're seeing a transformation at this time.

You know, we need mentors.

We need to see more people within the company tap us on our shoulder and say, "Hey, I see you up there," you know?

"I see you as a partner.

I see you as a CEO.

Let's work to get you there."

And so, yeah, I definitely think that that there's an enhanced movement in this country in DEI.

>> More and more people are paying attention to when the market opens and when it closes on a daily basis.

Now we're going to be looking for your company to see how it's doing.

And the call letters are... >> MEOAU.

>> M... >> MEOAU.

>> MEOAU.

>> On the Nasdaq.

>> On the Nasdaq.

>> That's right.

>> Shawn Rochester, Robin Watkins, thank you both for joining "The Chavis Chronicles."

>> Thank you.

>> Thank you, Dr. Chavis.

We appreciate it.

>> Major funding for "The Chavis Chronicles" is provided by... Reynolds American, dedicated to building a better tomorrow for our employees and communities.

Reynolds stands against racism and discrimination in all forms and is committed to building a more diverse and inclusive workplace.

American Petroleum Institute.

Through the core elements of API's Energy Excellence program, our members are committed to accelerating safety, environmental, and sustainability progress throughout the natural-gas and oil industry in the U.S. and around the world.

You can learn more at api.org/apienergyexcellence.

Over the next 10 years, Comcast is committing $1 billion to reach 50 million low-income Americans with the tools and resources they need to be ready for anything.

Additional funding provided by Pfizer.

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