Dealflow | June 25, 2019

TPG invests in Harlem Capital and its fund for minority entrepreneurs

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, June 25 – Investors are moving to seize “inclusion alpha.” TPG made an undisclosed equity investment in New York-based Harlem Capital, which invests in minority- and women-run startups, and joined Harlem’s first fund as a limited partner. 

Harlem Capital was started by Harvard Business School students Henri Pierre-Jacques and Jarrid Tingle and launched its first fund in December, targeting a $25 million raise to invest in women and minority entrepreneurs. It has backed 10 companies so far, including pro bono legal services firm Paladin and logistics firm Sudu

Women founders and founders of color collectively take in 3% or less of all venture funding. “Most of the funding dollars have gone to white males who are starting companies,” TPG’s Jon Winkelried told Forbes.

TPG is apparently looking to help break the trend. In exchange for an equity stake, capital to deploy, and investing expertise, TPG is turning to Harlem to help it diversify its own portfolio and talent. KKR launched a similar talent-focused initiative with Harlem in May.