Perfect Partners: Alaska Native investment in small business.

• Author: Simonelli, Isaac Stone
• Position: ALASKA NATIVE

In Spring 2018, The Eyak Corporation turned its eyes to Alaska for investment opportunities, landing on the popular local company Heather's Choice. Though about 95 percent of the village corporation's revenue--and investment--come from out of state, the in-state equity purchase was slated as being mutually beneficial both to the corporation and the local business.

"We're looking for companies that have a strong, local presence--looking for companies that have strong owners that are committed. And, the other thing that we really like in a company is that it can capitalize on Alaska's essence," explains Rod Worl, CEO of The Eyak Corporation. "And Heather's Choice was a very good example of a company that could capitalize on Alaska's essence but also had the potential for a large upsize in a large market. So that played an important factor in choosing to invest in it."

Local Priorities

Alaska Native corporations, from the twelve regional giants to the approximately 225 village corporations (which run the gamut in terms of size), play an important role in the Last Frontier's economy.

"Native corporations are the largest private landowners in Alaska, with title to 44 million acres of selected land throughout the state," explains the Resource Development Council's website. "Development of the resources beneath their lands offers Native corporations an opportunity to generate jobs and other economic benefits for their Native shareholders and fulfill the implicit promise Congress made to Alaska Natives in exchange for extinguishment of their aboriginal claims."

Because the extent of their land ownership is well known and many Alaska Native corporations did pursue natural resource projects in their early years, many people only associate Native corporations with resource extraction projects and investments; however, most have far more diversified investment portfolios, with many teaming up with local businesses to help them fulfill their mission.

The Eyak Corporation's mission is straightforward: "To return financial benefits to present and future shareholders through the development of economic opportunities and growth of our assets while protecting the ownership of our ANCSA lands and Native cultural heritage."

This has mostly been done through government contract work, much of it outside of Alaska, though Worl is clearly excited to be investing closer to home with Heather's Choice.

"It's always been the intent of our board and management to...