In This Newsletter
ICAP in Action
The HBCU Strategic Initiative and Fellows Update: The 2024 Cohort Break into the Industry
Inclusive Capitalism Executive Council Updates
ICAP News and Trends
ICAP In Action
A Breakthrough Year for Inclusive Capitalism at the Milken Institute 2024 Global Conference
Under the theme “Shaping a Shared Future,” the Institute convened government officials, academics, professionals across industries, nonprofits, and thought leaders to discuss a collaborative path forward for the world’s most pressing issues. The Institute welcomed over 5,000 attendees, gathered over 800 speakers, and produced over 200 public and private sessions, all geared towards creating an equitable future for all. In many ways, the 2024 Global Conference was a record-breaking year. The Inclusive Capitalism program (ICAP) also increased its impact within the conference.
The ICAP team doubled the number of panels curated in 2023, hosting three public panels, two private sessions, and co-hosting a private stakeholder’s reception in collaboration with entrepreneur Richelieu Dennis. The HBCU Fellows program also expanded its presence at the conference, doubling the number of Fellows in attendance throughout the week’s events. Each panel highlighted a critical area of focus for the ICAP program’s 2024 strategy.
ICAP Public Panels: Offering a Data-Backed Perspective
Kicking off the ICAP-hosted panels, speakers Carla Harris, senior advisor at Morgan Stanley, Martin Nesbitt, senior partner, co-chairman, and co-CEO of the Vistria Group, Nisha Biswal, deputy CEO of the US International Development Finance Corporation, and Roger Ferguson, immediate past president and CEO of TIAA joined the Institute’s Director of Financial Markets, Troy Duffie for the panel “Inclusive Capitalism: Unleashing Growth in the Global Economy” to discuss the business case for equity and inclusion in finance.
Ferguson stated, “Capitalism has had its moments when it's been under threat when the outcomes have been very negative. The reason to be optimistic is we tend to have self-correction devices about capitalism. Now we have capitalism 3.0, and what does that look like?" Panelists widely agreed that part of this new era of capitalism requires more diversity within firms to foster more creativity, incite better solutions, and create more efficiency for an optimal bottom line. Biswal spoke on the parallel needs within the international market—as the US is investing in the infrastructure of emerging markets, the Development Finance Corporation is mindful that investing also needs inclusion at its center. Challenges in the US and emerging markets often overlap and can benefit from similar challenges—fostering a more inclusive environment paves the way for more efficient capital markets.
The Global Conference also featured the first all-women-led, finance-focused panel on a mainstage. “The $700 Billion Opportunity: Unlocking the Female Dollar” panel invited Tonya Allen, president and CEO of the McKnight Foundation, Erin Harkless Moore, managing director of investments at Pivotal Ventures, Kwanza Jones, CEO and founder of the Kwanza Jones and Jose E. Feliciano Initiative, Sallie Krawcheck, CEO and founder of Ellevest, and Linnea Roberts, founder and CEO of GingerBread Capital with moderator Anna Mason, managing partner at Ingeborg Investments, to talk about the inclusion of women in the financial services industry. The panel underscored the vast untapped potential—and alpha—left on the table when women are cut out of decision-making positions. As Allen stated, “Talent is distributed evenly; opportunity is not.” The panelists highlighted the importance of trusting the data that illustrates positive returns and alpha generation when women have equitable access to capital.
Inclusive Capitalism: Unleashing Growth in the Global Economy panelists Roger Ferguson, immediate past president and CEO, TIAA, Carla Harris, senior client advisor, Morgan Stanley, Martin Nesbitt, senior partner, co-chairman, and co-CEO, The Vistria Group
The $700 Billion Opportunity speakers: Anna Mason, managing partner, Ingeborg Investments, Tonya Allen, president of the McKnight Foundation, Erin Harkless Moore, managing director, Investments, Pivotal Ventures, Kwanza Jones, CEO and founder, Kwanza Jones and Jose E. Feliciano Initiative, Sallie Krawcheck, CEO and founder, Ellevest, Linnea Roberts, founder and CEO, GingerBread Capital
The ICAP team rounded out the week with an HBCU-focused panel headlined by a conversation between NBA All-Star and Olympic Gold Medalist Chris Paul and American Television Host Kevin Frazier. Paul opened the panel by discussing the importance of accessible financial literacy resources and philanthropy as a tool for sponsorship and advocacy. Following the conversation, Duffie was joined onstage by speakers T.D. Jakes, chairman of the T.D. Jakes Foundation; Darlene Goins, head of philanthropy and community impact and president of Wells Fargo Foundation; Michael Ellison, co-founder and CEO of CodePath; Michael Lomax, president and CEO of United Negro College Fund (UNCF); and Gregory Vincent, president of Talladega College in a panel titled “Illuminating Success Stories on HBCU Campuses.”
Panelists discussed how HBCUs serve as social and economic mobility engines for underrepresented communities nationwide despite a vast economic disadvantage. Vincent set the stage by stating, “We do so much with so little.” The panel also highlighted a need to move from thinking and planning to collaboration and action to catalyze disruptive solutions fit for today’s complex challenges in the Black and brown communities. At the end of the panel, Troy acknowledged the 2024 cohort in the room and congratulated them for finishing the program curriculum and moving into their summer practicum—industry-leading financial internships.
Caption: HBCU Fellow 2024 Cohort with the key partners
The HBCU Strategic Initiative and Fellows Update: The 2024 Cohort Plugs in to the Industry
The second quarter of the year proved to be the quarter of education, connection, and travel for the 2024 cohort. In conjunction with their educational curriculum, Fellows connected with industry professionals who provided first-hand experience and insight into the concepts taught during their classes in weekly coffee chats. Moving beyond the virtual world, the cohort had the opportunity to attend conferences through key partnerships with the industry’s top trade organizations.
-
In March, a select group of Fellows attended the 2024 AltsLA conference in Los Angeles with the Chartered Alternative Investment Analyst Association. Fellows connected with California-based firms while learning about industry trends from an allocator’s perspective.
-
In April, Fellows attended the Alternative and Direct Investment Securities Association (ADISA) for their spring meetings in Chicago, where they were exposed to trending themes pertinent to the alternatives sector of the industry.
-
The World Bank Group invited the Fellows to attend the 2024 spring meetings, during which they learned about the leading challenges and solutions in international finance today.
The 2024 cohort attending the ADISA 2024 Spring Conference in Chicago, Illinois. From left to right: Melanie Schwartz, senior associate, Milken Institute; Joel Brown-Christenson, co-founder, ViableEdu; Duane Wright, HBCU fellow, Norfolk State University; Kennedy Jenkins, HBCU fellow, Bethune-Cookman University, DayMond Johnson, HBCU fellow, Morehouse College; Kennedi Nobles, HBCU fellow, Alabama State University; Olivia Gwin, HBCU fellow, Bethune-Cookman University; Jeremy White, HBCU fellow, Howard University, Troy Duffie, director, Milken Institute
In May, the Fellows completed the program's educational curriculum, having attended classes that broke down key components of industry including an introduction to capital markets, the mechanics of asset management, the mechanics of private equity, and the foundations of venture capital. The Fellows’ final educational session was an in-depth Excel modeling training workshop with Training the Streets, designed to prepare them for their practicum phase—summer internships at prestigious financial internship programs across the country. To date, 19 of the 20 Fellows have solidified internships with firms like JPMorgan Chase & Co., Oaktree Capital Management, Vista Equity Partners, KPMG, and Citi Bank. If you are interested in partnering with the ICAP team for internship opportunities, please email [email protected].
Inclusive Capitalism Executive Council Updates
Congratulations to council member Yup S. Kim on his move to join the Texas Municipal Retirement System as its chief investment officer (CIO) in January 2024 from the CalPERS private equity investment director position.
Congratulations to founding council member Scott Chan on his promotion from deputy CIO to CIO of CalSTRS this May.
The Inclusive Capitalism executive council welcomes new member Steven Meier, CIO of the New York City Retirement System (NYCERS).
ICAP News and Trends
The Knight Foundation recently released a paper on diversity in asset management within higher education institutions, illustrating the challenges of measuring and tracking inclusive practices of capital allocation. Since 2021, The Knight Foundation has been examining the management of the largest 25 private and 25 public college and university endowments in the US, which collectively manage over $560 billion in assets. Of the 50 invited, 18 institutions participated—hindering a comprehensive study due to lack of participation. Fostering a more transparent management process can, in turn, foster a more inclusive allocation process. College and university endowments are a major part of the financial sector today—totaling over $800 billion in assets under management. When allocated equitably, these institutions play an important role in providing equal opportunity to diverse- and women-owned fund managers.