Nurturing Diverse Talent in Asset Management
The number of multicultural and diverse households continues to grow, shifting the United States toward a nation where minorities compose a majority of the population. Despite research showing that diverse investing teams consistently outperform less diverse investing teams, women and minorities are still underrepresented in the private equity and real estate private equity investment sectors. Allstate works to secure the continuity of our workforce through a variety of diversity initiatives (Read more about inclusive diversity at Allstate). To ensure our investment team demonstrates superior performance and helps bridge the underrepresentation gap, Allstate created the Diversity Emerging Managers program.
The goal of Allstate’s Diversity Emerging Manager program is to identify the next generation of women and minority investment managers. To do this, we collaborate with Grosvenor Capital Management to select women- and minority-owned firms that demonstrate excellence to participate in the program.
Allstate committed $83 million of the $100 million allocated to the program to participating firms. We carefully assess the returns on the funds we commit for investment.
In addition to our financial commitment, the participating firms also receive development training from Grosvenor Capital Management that covers a wide range of topics related to operating an asset management firm, including management, finance and marketing.
Impact Community Capital
Impact Community Capital was founded to create a bridge between low-income communities in need of investment and insurance companies. It aims to invest policyholders’ capital in profitable investments while at the same time making a positive impact. Since its inception, the sum of ICC’s socially responsible investments in underserved communities has grown to more than $1 billion. The ICC invests in affordable housing, healthcare and economic development.
Since 2000, Allstate has helped ICC increase its ability to finance affordable housing by investing in securitized loans packaged by its Impact Community Impact Loan affiliate. Impact CIL purchases mortgage loans on newly constructed or rehabilitated affordable multifamily housing properties, most of which are eligible for Low Income Housing Tax Credits. When the mortgage pool reaches an optimal size, the loans are securitized. Under the Community Impact Loan Program, Impact CIL has provided more than $800 million of financing on project loans containing more than 33,000 low-income housing units.