Robert F. Kennedy Human Rights (RFK)

May 25, 2020, marked a turning point for the fight for social justice, particularly racial and economic equality. The Black Lives Matters protests of that summer, sparked by the tragic murder of George Floyd, created a call to action for every sector in our society, including the investment industry: to go beyond just diversity and inclusion efforts and develop sustainable strategies to address systemic racism within their organizations and portfolios. The Elevate Prize would transform the ability of the investment community to be held accountable and advance social equity at scale. With an injection of funds, Robert F. Kennedy Human Rights (RFK) will create the first of its kind “Asset Allocator Diversity Council” -an independent, member-driven non-profit organization managed by a Secretariat team and governed by an esteemed group of industry leaders and experts. The Council will establish a diversity, inclusion, and equity standard for the private equity industry and commit to delivering a suite of programmatic activities that will educate, measure, and activate the industry via awards, certifications, events, research, and campaigns.

My entire life has been rooted in the philosophy of service for a better humanity. I’ve done this most of my career by leveraging the influential and financial capital of the private sector as a force for good. Through the Council, I envision building a cadre of investment leaders who see profits not only as the end, but the means to a better, more equitable life, community, and social structure for all. I want to disrupt the performative statements of racial equity by incentivizing actions that lead to long-term impact in the investment sector through the work of this council, and the opportunities it can create for off-shoot products and services that support this vision. My long-term goals remain focused on continuing to grow as a compelling leader whose ambition is to serve with purpose by being a trusted partner to the investment sector as it seeks to do more good with the plenty it has been fortunate to achieve. The Elevate Prize would provide me a major launching pad to achieving this, allowing me to revolutionize the private equity space.

RFK advocates for key human rights issues, pursuing strategic litigation to hold governments accountable. We champion changemakers who inspire human rights defenders everywhere. We engage businesses, working to help them align with human rights norms. And to ensure change that lasts, we train the next generation of leaders.

We are at a turning point: global events have brought to light the deep socioeconomic inequities, pressuring the business community to move beyond rhetoric to concrete action. RFK leverages its network of 300 investment decision-makers -asset managers, public and private pension funds, endowments, foundations, and family offices- and enlists their influence to advance diversity and inclusion. Our network collectively controls $7 trillion in assets, of which, according to recent data, 1.3% are managed by women and minority-owned firms. Allocators remain reluctant to invest in diverse fund managers, even with no significant data on the difference in the performance of these funds. It is time to create an industry that is representative of society’s diverse demographic, which champions the goal of an economically equitable society. Our goal as an entity is to become the leading coalition that measures, tracks, and rewards the investment industry’s actions on diversity, equity, and inclusion.

The investment industry has a history of lacking diversity, inclusivity, and transparency. Without tools, data, and an incentives mechanism, a transformation to increase equitable capital access remains unlikely. Considering the sector’s ability to influence their portfolio companies and activate change in the business community, there is a call for a bold, symbiotic approach as we move forward. The Asset Allocator Diversity Council (The Council) will be the first mechanism to catalyze trackable asset allocation and investments that meet the standards required to support women and BIPOC communities. Our goal is to become the leading coalition that measures, tracks, and rewards the private equity industry’s actions on diversity, equity, and inclusion. Long-term sustainability will be driven by a diversified revenue model entailing membership fees, event income, and institutional grants. 

The council’s diverse composition across demographics and industry expertise echoes our collaborative and multilayered approach. Members will represent sectors that have a direct impact on the industry: Business Academia, Policy Leaders, Financial Luminaries, Allocators, and Fund Managers. From engaging with Harvard Business School for research to working with finance luminaries who can command influence from peers, the council will have the esteem and expertise needed to create industry change.

RFK has engaged investors for fifteen years: we co-created a Sustainable Impact course for investors with Columbia University; successfully campaigned for NY State’s first Farm Workers Bill; issued action guidelines for investors and led shareholder resolutions on social justice, and fostered hundreds of ESG off-the-record investor dialogues. The Council builds on this foundation of trust and credibility.

Our mission to begin at the top is strategic, as the pool of resources needed for diversity and inclusion in private equity (PE) must be the starting point for change. Globally, 10,000 PE firms have more than $3.9 trillion in assets under management. From offering equitable opportunities for social movements, to increased capital and leadership of minority-owned companies, and investments in profitable products and services that have positive impact on communities of color, the sector can change the face of businesses in private and public markets. The Council will: provide standards that work for allocators and managers; partner with entities, like Harvard, to develop case studies on best practices; create an industry-wide scorecard for action tied to earnings reports; develop a revenue model that allocates a portion of earnings to an investment fund for underrepresented minority led fund managers in PE; and more.