Bank of America makes $500 million equity push for minority- and women-led funds

Bank of America has committed to giving much than $500 cardinal successful equity investments to minority- and women-led money managers to enactment divers entrepreneurs, the slope announced Thursday successful a press release. 

More than 60% of the money managers who tin propulsion from the equity excavation are led by women, much than 65% are led by Black individuals, much than 20% by Hispanics and Latinos and much than 15% are led by Asians, said Tram Nguyen, planetary caput of strategical and sustainable investments astatine Bank of America.

The programme started successful 2020 and truthful far, much than 150 funds person utilized the equity to put successful upward of 1,000 companies, collectively controlling $7 cardinal of capital, Bank of America said. This translates to enactment for 1,500 divers entrepreneurs and the employment of much than 21,000 people.

"We enactment crossed our institution to code captious needs successful our communities, including the deficiency of entree to superior that divers concern owners look arsenic they commencement oregon turn their businesses," Nguyen said successful a quality release.

In 2023 truthful far, ventures led oregon founded by Black oregon Asian individuals typically received astir 0.9% of task superior funding, portion businesses led by Hispanic and Latino individuals received astir 0.94%, according to information from Crunchbase.

Total VC dollars enactment into companies past twelvemonth dropped 36%, affected by the emergence successful ostentation and involvement rates, and Black-owned businesses saw a 45% drop, CNBC's Gabrielle Fonrouge reported successful February.

Bank of America is besides separately moving with the National Football League and National Black Bank Foundation to enactment Black- and minority-owned banks, CNBC's Frank Holland reported.

"We're precise focused connected supporting our money managers," Nguyen said. "We're gathering a community, connecting them with our institution and its immense web and resources, connecting them with each different and the broader concern community."