New York Life Launches $1 Billion Impact Investing Initiative Targeting Underserved Communities
Appoints Martin King Head of Impact Investments
Leading U.S. mutual life insurance company New York Life announced today the launch of a 3-year, $1 billion impact investment initiative, aiming to address the racial wealth gap by investing in underserved and undercapitalized communities.
The company also announced the appointment of Martin King as head of impact investments. In his new role, King will be responsible for developing and overseeing New York Life’s long-term impact investment strategy to develop large-scale solutions and investment structures that aim to deliver broad and inclusive economic outcomes linked to job growth, health and wellness, and personal and household advancement. King joined New York Life in 2006, and currently is the Head of the Investment Credit team, overseeing $70 billion of investment grade fixed income assets. He will retain his current position, adding the impact investing responsibilities to his existing role.
The new impact investing initiative will focus on supporting small businesses, affordable housing, and community development, and will partner with diverse asset managers, federally chartered community development financial institutions (CDFI), and other mission-driven organizations to amplify their efforts on the ground.
Tony Malloy, Chief Investment Officer at New York Life, said:
“The societal events of the past year have stirred an urgency to address America’s racial disparities, which the Covid-19 pandemic has only made more glaring. Now, more than ever, is the right time to make impact investments that drive change. We are focused on investments that seek to not only deliver meaningful societal impacts, but also provide the potential to generate market returns to help build and sustain positive economic outcomes in underserved and undercapitalized communities over the long term.”
For its initial investments under the new initiative, New York Life is partnering with private equity investment management firm Fairview Capital, with a $150 million commitment to invest in diverse and emerging fund managers. New York Life expects to make 15 venture capital and growth equity limited partnership commitments through the new collaboration, supporting dozens of businesses, and resulting in several hundred businesses impacted overall.
Laurence Morse, Fairview Capital co-founder and Managing Partner, said:
“Small businesses are the lifeblood of most communities and must thrive for those communities to prosper. Venture capital and private equity investments generally provide a gateway to entrepreneurship, especially for minority entrepreneurs who are often held back by limited access to funds. Institutional investors like New York Life who share our values, goals, and vision help fill the gap by partnering with up-and-coming diverse asset managers who often support a higher proportion of companies with diverse ownership and leadership teams.”