Legendary Stucco

Legendary Stucco

This portfolio company has been written off per generally accepted accounting principles (GAAP).

  Back to portfolio                                             

What they do

Legendary Stucco is a Black-owned, family-operated construction business, specializing in lath and plaster, re-stucco, and patch and repair for commercial and residential buildings, including new construction. Legendary Stucco began as Logan Plastering, founded 60 years ago by Thaddeous Logan, who delegated ownership to his grandson, Keith Logan, a third-generation lath and plaster contractor. The company’s construction projects include senior citizen living facilities, community centers, multi-family buildings, housing developments, townhouses, Accessory Dwelling Units (ADUs), and retail.

Why we invested

As a result of a revamped strategic plan, Legendary Stucco is experiencing exponential business growth with many new contracts secured in 2023. As a subcontractor, Legendary Stucco must front labor and material costs when they begin projects. It is common practice for the general contractor to reimburse subcontractors for these costs 45 to 60 days later. In addition, the general contractor typically retains 10–20% of invoices until completion of the entire project. For these reasons, Legendary Stucco needed working capital to begin its projects. The ramp-up in new projects caused a cash crunch for the company ahead of reimbursements for successfully completed contracts. This loan will provide the company with the necessary working capital to fund payroll, material costs, and insurance. It will also allow the company to scale, enabling them to generate the necessary retained earnings to purchase work vehicles and equipment to support the high demand for work. This investment represents a deal under the Subcontractor Financing Program, a part of the Advance Strategy that provides the capital diverse suppliers need for expansion and delivery on contracts.

Impact Segment

Skills training & workforce development

Impact Vehicle

Subcontractor Financing Program (part of the Advance Strategy)

Date of Investment

April 2023

Impact Geography

San Diego, California

Leadership

Keith Logan Owner

Year Founded

Founded in 1963 Rebranded in 2022   Refer a borrower