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New York Life Starts $1 Billion Wealth Gap Investment Effort

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What You Need to Know

  • New York Life will start by investing $150 million together with Fairview Capital.
  • The Fairview Capital fund could help finance several hundred businesses.
  • Martin King will manage the new impact investment portfolio.

New York Life is investing some of its $702 billion in assets in projects that could help close the racial wealth gap in the United States.

The New York-based life insurer said Tuesday it will commit $1 billion to the impact investments effort over three years.

The company said it will focus on backing small businesses, affordable housing projects and community development projects.

New York Life will start by putting $150 million in a fund to be managed by Fairview Capital. The fund will invest in an average of $10 million in 15 different venture capital and limited partnership deals. Each of those deals will provide financing for dozens of businesses, according to New York Life, which predicts the Fairview Capital alliance will invest in several hundred businesses.

The company has picked Martin King, the head of its investment credit team, to run the program, along with continuing to manage $70 billion in bonds and other fixed-income investments.

Tony Malloy, chief investment officer at New York Life, said in a statement  that COVID-19 has made America’s racial disparities especially glaring.

“We are focused on investments that seek to not only deliver meaningful societal impacts, but also provide the potential to generate market returns,” Malloy said.

King, the head of New York Life’s side of the effort, has been working in the firm’s investment operations since 2006. Previously, he was a credit analyst at S&P Global Ratings and a commercial loan officer at NationsBank. He has a bachelor’s degree from the University of Florida and a master’s degree in business from Columbia.

Fairview Capital, New York Life’s partner, was co-founded by Laurence Morse and JoAnn Price.

Morse is a TSG Ventures alumnus who is now chairman of the Howard University board of trustees. Price is the former president of the National Association of Investment Companies. She serves on the Howard University business school board.

 

 

(Photo: Alex Millauer/Shutterstock)