The Reconstruction | August 12, 2021

Northwestern Mutual backs Black fund managers with a $100 million impact fund

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, August 12 — Financial services giant Northwestern Mutual is hoping to catalyze investments in underserved Black communities, especially in Milwaukee, where it is headquartered.

The vehicle is backed by Northwestern Mutual’s $270 billion general account, the company’s Ray Manista told ImpactAlpha.

It has already deployed $30 million in a pair of Black women-led funds: Gateway Capital Partners, which has raised $13.5 million to invest in early-stage startups targeting low-income Milwaukee County,and Clear Vision Impact Fund in New York, which will make loans to minority-led or owned small businesses.

The Reconstruction

Corporations have stepped up to help Black and Latinx fund managers invest in companies addressing disparities faced by communities of color (see, “​​How some corporations are driving capital to Black founders and investors”). 

Black-led Brown Venture Group will receive up to $10 million from Best Buy to provide financing for Black, Latinx and Indigenous technology entrepreneurs.