Dillion Iwu
In a thought-provoking exploration of the financial landscape over the past four years, (Director) Dillon Iwu sheds light on the profound changes occurring during what is now recognized as the George Floyd era.
In a Commentary , Iwu delves into the remarkable shift in the investor landscape, revealing how individuals from diverse backgrounds have expanded their assets under management, opening up new funding avenues for underrepresented founders and businesses. The heart of this transformation lies in the rise of investment funds led by diverse teams dedicated to supporting a broad spectrum of businesses, with a specific emphasis on empowering Black founders.
Iwu navigates through nearly a decade of consistent growth in the number of new investors, highlighting a sixfold increase in diverse managers overseeing assets of less than $100 million since 2014. This surge, fueled by mission-driven individuals leaving corporate roles, showcases a commitment to actively fund Black founders and other underrepresented groups. The article underlines a growing recognition that investing in Black businesses aligns not only with social responsibility but also with sound business sense, potentially contributing to a substantial boost in GDP.
Despite challenges such as economic fluctuations and inflation concerns, Iwu emphasizes the unwavering commitment within the financial services industry to enhance diversity and inclusion. Private funds organizations, including venture capital and private equity firms, have intensified efforts to tap into the talent pool of Historically Black Colleges and Universities (HBCUs) and students from diverse backgrounds. As these emerging financial professionals take on key roles, the prospects for increased investments in Black founders are deemed more promising than ever.
Iwu spotlights AltFinance as a noteworthy example, generously funded by private equity giants like Oaktree Capital, Ares Management, and Apollo. Pledging over $90 million, AltFinance aims to create a talent pipeline from HBCUs nationwide into various financial services careers, including investment banking, private equity, and venture capital. This initiative, alongside contributions from organizations like the American Investment Council and the National Association of Investment Companies, showcases a shared commitment to exposing individuals from diverse backgrounds to opportunities in the finance sector.
The AFRO, for 131 years, has centered the Black community in its award-winning coverage. The organization joined several other Baltimore-based businesses, including MD Energy Advisors, SCB Management, and Watkins Security Agency, as IC100 Award winners.
The article concludes by emphasizing the need for effective public policies to sustain and encourage this wave of diverse investments. Iwu suggests that the Biden Administration and state governments should consider implementing incentives and seek cooperation from existing investment businesses. Policies aimed at strengthening investments to support small businesses, such as the State Small Business Credit Initiative, are seen as crucial steps forward. The tangible benefits of these initiatives demonstrate the potential impact of thoughtful public policies in strengthening the finance industry and supporting the growth of small businesses.
Photo: Antony Ressler, co-founder of Ares Management, takes photos with students of the AltFinance Fellowship. Marcus Shaw, AltFinance
