Key Takeaways
- • The Ford Foundation, Visa Foundation, and Fairview Capital announced a partnership and expanded financial commitment to the Fairview Foundations Emerging Managers Fund, which invests in funds and direct co-investments backed by diverse and women-owned venture capital and private equity firms.
- • Fairview Capital will manage the fund, with significant financial commitments from both Visa Foundation and the Ford Foundation; no specific dollar amount for the expanded commitments was disclosed in the release.
- • The fund was originally backed by the Ford Foundation in 2019 and focuses on new firms and small funds, positioning it as a model for foundations and endowments seeking market-rate or better returns through programmatic investing with diverse managers.
- • Citing the U.S. Government Accountability Office, the release notes U.S.-based asset managers oversee over $70 trillion, while women- and minority-owned firms manage less than 1 percent of those assets.
- • Fairview Capital, with over $10 billion under management since its founding nearly 30 years ago, is one of the largest minority-owned investment firms in the United States.
Summary
The Ford Foundation, Visa Foundation, and Fairview Capital announced a partnership and expanded financial commitment to the Fairview Foundations Emerging Managers Fund, according to a Business Wire release dated March 8, 2022. The fund invests in funds and direct co-investments backed by diverse and women-owned venture capital and private equity firms. Fairview Capital will manage the vehicle, with significant commitments from Visa Foundation, the philanthropic affiliate of payments company Visa (NYSE: V), and the Ford Foundation, an independent nonprofit with assets valued at $16 billion.
The release cites U.S. Government Accountability Office data showing that U.S.-based asset management firms manage over $70 trillion, while women- and minority-owned firms manage less than 1 percent of those assets. The partners argue that the universe of diverse venture and private equity managers is expanding rapidly, making the opportunity for institutional investors greater than ever. The multi-year fund was originally backed by the Ford Foundation in 2019 and was designed to catalyze growth among diverse firms by focusing on new managers and small funds. The partners also present the fund as a model for other foundations and endowments, arguing that a structured, programmatic approach to investing with diverse managers can generate market or above-market returns.
Roy Swan, Director of Mission Investments at the Ford Foundation, said the partnership seeks to build an asset management industry that more closely reflects society while pursuing superior financial returns. Graham Macmillan, President of Visa Foundation, said the investment reflects Fairview's track record toward equitable economic outcomes.
Fairview Capital, founded nearly 30 years ago by Laurence C. Morse, Ph.D., and JoAnn Price and headquartered in West Hartford, Connecticut, with an office in San Francisco, describes itself as one of the largest minority-owned investment companies in the United States, with over $10 billion under management since inception. The firm invests on behalf of foundations, endowments, and public and private pension plans. Morse, Co-Founder and Managing Partner, said the Visa Foundation's analysis of the initial partnership's results led it to expand the effort with Fairview and the Ford Foundation. The release does not disclose the size of the expanded commitments.
The release cites U.S. Government Accountability Office data showing that U.S.-based asset management firms manage over $70 trillion, while women- and minority-owned firms manage less than 1 percent of those assets. The partners argue that the universe of diverse venture and private equity managers is expanding rapidly, making the opportunity for institutional investors greater than ever. The multi-year fund was originally backed by the Ford Foundation in 2019 and was designed to catalyze growth among diverse firms by focusing on new managers and small funds. The partners also present the fund as a model for other foundations and endowments, arguing that a structured, programmatic approach to investing with diverse managers can generate market or above-market returns.
Roy Swan, Director of Mission Investments at the Ford Foundation, said the partnership seeks to build an asset management industry that more closely reflects society while pursuing superior financial returns. Graham Macmillan, President of Visa Foundation, said the investment reflects Fairview's track record toward equitable economic outcomes.
Fairview Capital, founded nearly 30 years ago by Laurence C. Morse, Ph.D., and JoAnn Price and headquartered in West Hartford, Connecticut, with an office in San Francisco, describes itself as one of the largest minority-owned investment companies in the United States, with over $10 billion under management since inception. The firm invests on behalf of foundations, endowments, and public and private pension plans. Morse, Co-Founder and Managing Partner, said the Visa Foundation's analysis of the initial partnership's results led it to expand the effort with Fairview and the Ford Foundation. The release does not disclose the size of the expanded commitments.
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