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Black-Owned Asset Management Firms: A Vital Force in the U.S. Economy 

Black-Owned Asset Management Firms: A Vital Force in the U.S. Economy 

Industry Insight Series NAIC BOAMF Blog 020325 V1

African Americans have played a transformative role in shaping the U.S. financial sector for over a century. From early pioneers like Maggie Lena Walker—the first African American woman to charter and lead a bank in 1903—to modern visionaries such as Robert F. Smith of Vista Equity Partners, Mellody Hobson of Ariel Investments, and Sherrese Clarke Soares of HarbourView Equity Partners, Black leaders have consistently demonstrated resilience, innovation, and unparalleled ingenuity.

These trailblazers are not just navigating the competitive world of finance but are redefining excellence in the alternative asset management industry. 

The National Association of Investment Companies (NAIC) regularly showcases the profound impact of Black-owned asset management firms on the U.S. economy. These firms are not only expanding their market presence but are also executing increasingly sophisticated alpha-generating transactions. NAIC’s 86 Black-owned member firms collectively manage more than $184 billion in assets, investing across diverse strategies. Their reach extends to over 1300 portfolio companies, supporting more than 1.6 million jobs globally. Yet these firms represent only about one-third of all Black-owned firms in the sector, suggesting their overall economic impact is far greater.

Collective AUM of Black-owned member firms

$ 100 Billion

Global revenue generated by Black-owned member firms

$ 100 Billion

Jobs supported by Black-owned members

0 Million

Their influence extends beyond balance sheets and portfolio performance. While not all Black-led investment firms focus exclusively on Black communities, they are more likely to invest in minority-owned businesses that general market firms traditionally overlook. They are also more likely to employ a diverse workforce. This intentional approach fosters economic opportunities and helps address systemic inequities by supporting wealth creation in underrepresented communities. By prioritizing diversity, these firms create a ripple effect that promotes job growth and strengthens local economies.

The broader implications of these efforts are substantial. The International Monetary Fund estimates that systemic racism could cost the U.S. economy between $1 trillion and $1.5 trillion from 2019 to 2028, equating to 4-6% of GDP by 2028. By investing in businesses and communities that have been historically underserved, Black-led asset managers play a vital role in mitigating these losses, driving economic equity, and unlocking untapped potential for growth across the nation.

Transformative Success Stories

The impact of Black-owned firms extends beyond economic metrics. Their achievements inspire young professionals to pursue careers in finance, creating a virtuous cycle of mentorship and representation. Leaders like Verdun Perry, who raised $25 billion for Strategic Partners at Blackstone, and Grain Management Founder David Grain, who has set new standards in private equity, are powerful role models for the next generation.

Many of today’s leaders have inspirational stories. Among them is Sherman Williams, a decorated U.S. Naval Academy graduate with two Bronze Star Medals who co-founded Academy Investor Network (AIN), a venture capital fund investing in U.S. military veteran-led and civilian-led startups. There is also James Simmons, who, after learning leadership from legendary executive Jack Welch at General Electric’s management program, transitioned into real estate investing and founded Asland Capital.

Similarly, Duane Jackson, raised on Chicago’s South Side, discovered finance after noticing classmates engaging in day trading while attending a prestigious boarding school. Jackson later became a Toigo Private Equity Fellow at Vista Equity Partners before launching Author Capital, which invests in founder- and family-led companies across the U.S. and Canada. Finally, Tarrus Richardson launched IMB Partners to support minority-owned businesses and established the Council of Urban Professionals (CUP), an organization dedicated to inspiring and empowering diverse business and civic leaders, especially women.

The broader market is taking notice of the leadership within the diverse marketplace. In 2024, Grain Management LLC was highlighted in Bloomberg’s 2024 Private Equity League Tables, ranking among the top-performing funds across sectors like Buyout, Growth, Infrastructure, and Private Credit. Additionally, Black-led firms Vista Equity Partners, Harlem Capital, IMB Partners, and Vistria Group were celebrated by Inc. Magazine as Founder-Friendly Investors, underscoring their commitment to driving value.

This legacy of leadership continues to inspire current trailblazers like Sherrese Clarke Soares, Founder and CEO of HarbourView Equity Partners. Clarke Soares underscores the critical role of mentorship and representation in driving progress within the industry. “The next generation inspires me,” she shares. “But there’s no reason Robert [Smith] shouldn’t be Blackstone, and I shouldn’t be Robert. And there should be 50 other me’s.”

A Vision for the Future

As the number and scale of Black-owned firms continue to grow, their impact on the global economy becomes increasingly undeniable. The challenges they face are significant, but so are the opportunities.

“Sometimes it’s so easy to forget how far we’ve come. We have a tremendous opportunity now. The opportunity is to help others see the hidden gems within our communities.”

NAIC PaulCampbell Quote

Dr. Paul Campbell

Founder and Managing Partner
Brown Venture Group

Despite their successes, Black-owned asset management firms continue to face systemic barriers, including limited access to capital and entrenched biases within the financial services industry. Organizations like NAIC are critical in addressing these challenges by advocating for diversity and creating pathways for underrepresented professionals.

Studies by organizations including the Knight Foundation and NAIC consistently show that diverse-led funds not only achieve performance parity with their peers but often surpass industry standards. And while diversity initiatives face increasing scrutiny from the federal government, Black-owned firms continue to demonstrate remarkable resilience and adaptability. While the road ahead may bring new obstacles, Black-owned firms’ proven strength and determination ensure they will endure and continue to lead, thrive and inspire future generations.