The commercial investment fund will seek to invest in funds sponsored by best in class woman- and minority-owned venture capital and private equity firms
New York / April 23 2019 – Fairview Capital Partners and the Ford Foundation have partnered to launch a new investment fund that will invest in funds sponsored by diverse, women and minority-owned, venture capital and private equity firms. According to a U.S. Government Accountability Office publication, firms owned by women and people of color manage only 1% of the $70 trillion in assets under management in the U.S.
A pioneer and industry leader, Fairview develops innovative investment programs for investors seeking to identify and invest with talented next generation emerging managers in venture capital and private equity. The Ford Foundation, one of the largest foundations in the world, is at the forefront of working towards more diversity, equity, and inclusion in the financial markets.
Fairview will manage the new investment fund supported by a multi-year financial commitment from Ford. The fund will leverage Fairview’s deep experience in investing with diverse and next-generation emerging managers to generate superior risk-adjusted financial returns. These managers have the potential to outperform in part because they tend to feature differentiated networks and deal flow and may target markets that more established venture capital and private equity firms have overlooked.
The diverse manager opportunity set in venture capital and private equity has grown substantially in recent years, yet the vast majority of these firms remain below the radar of institutional investors,” said Larry Morse, Co-founder and Managing Partner at Fairview. “In our experience, the best of these firms have the potential to outperform significantly, and an appropriately designed and executed program stands to generate a multitude of benefits.
The partnership between Fairview and the Ford Foundation aims to play a role in catalyzing the growth of diverse firms while demonstrating that a programmatic, commercial approach to investing with diverse managers can generate market-rate returns for institutional investors. Recently in 2017, the Ford Foundation created its new Mission Investments team – charged with investing $1 billion over ten years in impact investments – and they’ve expanded its sector focus to include Diverse Managers and Quality Jobs.
Equitable access to capital is key to an inclusive economy. And while the asset management industry wields tremendous influence over the economy, its professionals don’t reflect the gender, ethnic, or racial diversity of the world around them,” said Roy Swan, director of the foundation’s Mission Investments team. “Ford’s mission aligns with investing in diverse fund managers because doing so will lead to better investment outcomes, encourage these managers to become high impact donors in their communities, and signal the field to hire and invest in diverse professionals and business owners.
The fund will begin its
investment activity this year. Investments will span the private markets and include
venture capital, growth equity, and buyout strategies. Target firms will feature
substantial diversity and exhibit characteristics consistent with the potential
to outperform. The fund may also directly co-invest alongside select managers.
About Fairview Capital Partners:
Fairview Capital Partners, Inc. is a leading venture capital and private equity investment management firm with significant expertise in developing intelligent investment solutions for institutional investors. The Firm was founded by JoAnn H. Price and Laurence C. Morse, Ph.D. in 1994. Fairview is an independent, US SEC registered private equity investment management firm, with aggregate fund capitalization of $9.6 billion since inception. Investment solutions provided by Fairview support a wide range of institutional investors, including some of the most sophisticated public and corporate pension plans, endowments, foundations and family offices.
About the Ford Foundation:
The Ford Foundation is an independent, nonprofit grant-making organization. For more than 80 years it has worked with courageous people on the frontlines of social change worldwide, guided by its mission to strengthen democratic values, reduce poverty and injustice, promote international cooperation, and advance human achievement. With headquarters in New York, the foundation has offices in Latin America, Africa, the Middle East, and Asia.