After years of economic development focused on resource extraction and gaming, the Lower Brule Sioux Tribe, a federally-recognized tribe located in South Dakota, recently purchased the Westrock Group, making the company the first fully Tribally-owned investment firm.
This purchase signals not only a major shift in Tribal economic development focus, it also provides the Westrock Group with a huge advantage over other investment firms. Because it is a Tribally-owned business, the firm will not be liable for Federal income tax. Tribal ownership will also give Westrock access to funds that were previously off-limits because Westrock was not a minority-owned business. Now the company may reach out to state pension funds, college endowments, and other government contractors that require a part of their money to be invested through minority-owned firms.
Without question, the growth potential for Westrock and the returns realized by the Tribe may herald a new era of Tribal economic development.
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