Of the world’s $70+ trillion in investments, little more than 1% is controlled by firms owned by women and people of color. Likewise, women and people of color comprise less than 13% of investment managers or executive committee-level staff. How to facilitate real change – undergirding discussions of “DEI” (diversity, equity and inclusion) with a substantial transfer of capital – was the focus of Confluence’s day-and-a-half retreat in mid-January at the California Endowment.
As part of our Kellogg-funded racial equity initiative, and following a half-year of research, we enabled the uncommon pairing of 10 foundation representatives along with 11 financial advisors and asset managers (with a combined $185,148,939,149 assets under management) to hold a private, candid dialogue regarding the fair expansion of capital, including diversifying management, ownership and deployment.
Facilitated by consultant Greg Hodge, a seasoned trainer and a wise and energetic facilitator, the group broke the ice by offering personal reflections pertaining to race and racism. Greg guided us through frameworks for understanding the development of the racial construct and discriminatory laws and regulations in the US. Consultant Erika Davies then presented her research findings on the miniscule percentage of capital controlled by people of color-owned firms and the overarching whiteness and maleness in philanthropy’s investment side.
Most importantly, the retreat’s final portion acknowledged both the myriad challenges involved with changing corporate finance institutional culture and understanding the particular hurdles of implicit bias, plus the importance of bolstering support structures for people of color within the industry.
This excerpt from an anonymous survey captures the dynamism and significant groundwork established by the retreat. Confluence staff and board members who attended were extremely pleased with the group’s openness, energy and insights, as well as its enthusiasm for remaining in touch and helping to crack this nut.
Though participants did put forward some specific ideas, it was clear that focused, strategic work is warranted in order to change the composition of firms, the control of assets, and the targeting and impact of capital. Confluence will hold a special luncheon at our upcoming Practitioners Gathering – March 4-7 in Brooklyn, NY – to report out on this work and engage a broader audience. If you are interested in being part of this working group, please contact Mitty Owens, Confluence’s program director managing this work, at Mitty(at)ConfluencePhilanthropy.org.
