My Intentional Investing Journey

“If you can see it, you can be it,” is a phrase so often used to inspire. While it may be true for some, for others just because they can “see it,” doesn’t mean they can “be it,” as many lack access (e.g., connections, capital, education, etc.).

My first real career aspiration after wanting to be an artist and/or a ballet dancer was to be a businesswoman that bought and sold companies. I had just finished watching Pretty Woman and Richard Gere’s job fascinated me. It was my first glimpse at Wall Street and after some research, I could definitely see it! However, even though I was a native New Yorker, I lacked the connections that would get me into the much-coveted training programs at the Wall Street firms. Thankfully, understanding that there is a need to bridge the gaps in access and opportunity, a nonprofit organization, Sponsors for Educational Opportunities (SEO), created a premier professional development program that provides underrepresented minority undergrads with industry exposure in financial services, career guidance, interview skills, and training. Through this program, I not only spent the summer learning about M&A (mergers and acquisitions) but also built the networks and skills I needed to “be it.”

With this gift of access from SEO, I spent many years building my career in the financial services industry, mastering an entry-level training program, going to a top-tier Business school, becoming a VP at a Wall Street firm, and then embarking on a career at a credit hedge fund. It took several years before I picked my head up, noticed my surroundings, and really acknowledged the extreme underrepresentation of women of color in the financial services industry as well as the pay disparity. [1] Naively, I thought it was a lack of access to organizations such as SEO or other educational opportunities so I turned my efforts to philanthropy, as a board member, volunteer, and donor, assuming that would solve the problem.

However, the more engaged I became, the more I really began to understand the deep structural inequities that prohibited success for underrepresented communities because of lack of access to so many different areas of society (e.g., capital, education, equal pay, healthcare, etc.). More than just philanthropy would be needed to solve the issue. I began to wonder what it would take to convince all companies to hire diverse talent, pay equally, and invest in diverse communities.

Fast forward to 2013 when I joined Syntrinsic Investment Counsel and used my financial expertise investing in businesses to provide strategic consulting and investment advice to nonprofit organizations. At Syntrinsic, our purpose is to co-create a sustainable and generative world that empowers all people. In my role as President and Consultant, I have the privilege to work with clients to think about how they can leverage all of their investments to create a sustainable economy. For some, that means using investments to advocate for companies to change the relationship between the organization and its workforce, customers, the environment, and communities in which it operates. For others, it involves directly investing in strategies that are focused on solving economic injustice.

Even with a successful career, as a Black woman, I have encountered blatant racism, more microaggressions than I can count, a lack of access, and a lack of equal pay. I am frequently dismissed when I enter a meeting and people defer to my white colleagues even if they are more junior. In all honesty, I can’t tell you if that is because I am a woman, a Black woman, and/or because I am 4’11” in height. However, what I do know from those experiences is that it will take more than just harnessing the power of the capital markets to create a world where all can “see it and then be it.” Without non-profit organizations such as SEO I am not sure I would have had the resources, networks, career guidance, and roadmap needed to survive-- much less be successful in the financial services industry. That being said, we must go beyond providing entry into the system, for we still need to entice companies to retain, promote, and equally pay diverse talent. As investors we have roles to play to provide access to not only financial capital but also inclusive social capital and systems.

With that knowledge, my journey investing for economic justice includes educating the field where I can, engaging in the community, and investing with a lens towards racial justice.

Education

I believe it is the responsibility of all to educate investors on not only the moral imperative of economic injustice but also the economic imperative. A study done by McKinsey in 2020 found that by closing the racial wealth gap, US Gross Domestic Product (GDP) could be 4-6% higher by 2028.[2]

I am privileged to have the forum at Syntrinsic to write whitepapers and also to be asked to participate on panels and podcasts about investing with a racial equity lens. While this work feels uncomfortable, challenging, and on many days draining, I am committed to sharing my experiences and my clients’ journeys to investing with a lens towards economic and social justice to grow the field and the knowledge base.

Engaging in Community

Our personal engagements in the community have meaning and purpose and can be a powerful method for addressing injustices. I know that I have a role to play and continuously ask myself the following questions as I engage:

• Is the work I’m doing elevating communities of color and creating economic sustainability?
• I’m not as privileged as some, but I do have privilege—so how do I use it to bring others along?
• How am I bringing other people up with me? Am I helping to expand tables instead of reshuffling seats?
• If I am not able to serve, am I sharing the names of five people that are women and people of color who could be great for the organization?

Intentional Investing

Personally, as an investor, I can intentionally advocate for the things I want to see in the world. I can allocate my investments to diverse investment managers, invest in businesses led by women and people of color, activate my cash in support of women and underserved communities, and advocate for diverse representation in companies at all levels. This alone has the power to change the face of not only the asset management industry but the workforce in general.

Specifically, I believe that having diversified sources of income and investments will lead to the best success. My husband and I have focused on building wealth through real estate, investing in the capital markets, and becoming entrepreneurs. With those investments we aim to have a balanced portfolio of private real estate investments, investments in the traditional capital markets, and investments in our respective companies.  In our investment portfolio we decided to use multiple strategies to invest for economic justice and leverage our impact; we emphasize Environmental, Social and Governance (ESG) integration, exclusionary screening, thematic investments with a racial and gender lens, and diverse investment managers. We are constantly evaluating opportunities to have a more directed impact in all of our portfolios (e.g., 401K, taxable portfolios, and Donor Advised Funds). Most recently, we have made a commitment through our Donor Advised Fund with the Women’s Foundation of Colorado to a loan fund that is dedicated to supporting Black women entrepreneurs.

Our approach to investing for economic justice is a journey, as providing access is not enough. To create a sustainable economy that is economically just, we believe we need to change how we engage as individuals, investors, and employers. The past year, while challenging, has provided us some additional knowledge and opportunities to create systemic change.