MassMutual allocates $100 million to various new fund managers
Massachusetts Mutual Life Insurance Company (MassMutual), a firm that focuses on funds led by Black, Latino and Indigenous fund managers, recently announced the new effort, which adds to the $50 million previously invested.
Diane Henry, Head of Impact Investing Funds at MassMutual, which is responsible for overseeing the First Fund Initiative, said:
We believe that fairer access to capital will play a central role in unlocking untapped growth in the US economy and we are excited to continue investing in the next generation of diverse fund managers.
According to a study by the National Association of Investment Firms (NAIC), the largest organization of alternative investment firms held by diverse owners, its members outperformed Burgiss Median in 83.3% of periods measured as a net multiple. of Equity (MOIC), which underscores how diverse fund managers represent an outperforming but untapped market.
This is known by MassMutual, which since 2021 has invested in seven funds led by various early-stage fund managers through the First Fund Initiative, including its most recent investment in Impact America Fund, a venture capital fund. which supports early-stage companies that develop the economic and L’Attitude Ventures, a venture capital fund that invests exclusively in Latin American start-ups with high growth potential.
“We go beyond simply examining the problem of lack of diversity in access to capital. With this additional capital, we double the opportunity to support these high performing investment managers. Through our First Fund initiative and our leadership in this area, we hope to open the door for other institutions to follow,” added Henry.
We are dedicating an additional $100 million to continue investing in funds led by Black, Latino and Indigenous fund managers for the first time as part of our First Fund initiative. Learn how impact investing generates financial returns and advances racial equity. https://t.co/Afx8mIW9y4 pic.twitter.com/nDa9XMfTbp
– MassMutual (@massmutual) October 6, 2022
MassMutual also launched the Catalyst Fund (MMCF) last year, with an investment of $50 million, bringing the company’s total impact investing commitment to $200 million.
This fund invests directly in black-led companies based in the company’s home state of Massachusetts, as well as companies based outside of Boston to drive innovation across the Commonwealth.
“There are huge opportunities in companies and funds that are being overlooked due to systemic barriers. Through impact investing, MassMutual is developing innovative approaches and alternatives to sourcing, screening, due diligence and underwriting to identify high-potential investments that also reduce structural inequalities and advance equity racial. We look forward to building on the foundational work and success of these initiatives to drive financial returns and social change,” said Liz Roberts, Head of Impact Investing at MassMutual.