1 and most admired
2 mutual life insurer, today announced a $1 billion impact investment initiative with the aim to address the racial wealth gap by investing in underserved and undercapitalized communities over the next three years with a focus on supporting small businesses, affordable housing, and community development. The company will partner with diverse asset managers, federally chartered community development financial institutions (CDFI), and other mission-driven organizations to amplify their efforts on the ground.
“The societal events of the past year have stirred an urgency to address America’s racial disparities, which the Covid-19 pandemic has only made more glaring. Now, more than ever, is the right time to make impact investments that drive change,” said Tony Malloy, chief investment officer at New York Life. “We are focused on investments that seek to not only deliver meaningful societal impacts, but also provide the potential to generate market returns to
What You Need to Know
New York Life will start by investing $150 million together with Fairview Capital.
The Fairview Capital fund could help finance several hundred businesses.
Martin King will manage the new impact investment portfolio.
New York Life is investing some of its $702 billion in assets in projects that could help close the racial wealth gap in the United States.
The New York-based life insurer said Tuesday it will commit $1 billion to the impact investments effort over three years.
The company said it will focus on backing small businesses, affordable housing projects and community development projects.
New York Life will start by putting $150 million in a fund to be managed by Fairview Capital. The fund will invest in an average of $10 million in 15 different venture capital and limited partnership deals. Each of those deals will provide financing for dozens of businesses, according to New York Life, which predicts the Fairview Capital alliance will invest in