A Money + Meaning Podcast with Anna Blanding of ConnCORP, Brian Fernandes-Halloran of Halloran Philanthropies, Danielle Reed of Builders Vision, and Daryn Dodson of Illumen Capital
Shifts in policy and public sentiment are creating headwinds for diversity, equity, and inclusion (DEI) initiatives in various sectors. However, some mission-driven allocators are staying the course on their commitments to a diverse investing future. By continuing these investments, allocators address the funding equity gap for founders who are people of color, women, or both. They also pursue financial returns and a more vibrant, sustainable economy.
A new Money and Meaning episode features a SOCAP24 session with allocators who offer examples for other investors seeking diverse funding opportunities and stronger financial performance. Find excerpts below from the conversation featuring:
- Anna Blanding, William Caspar Graustein Memorial Fund, ConnCORP
- Brian Fernandes-Halloran, Halloran Philanthropies
- Danielle Reed, Builders Vision
- Daryn Dodson, Illumen Capital, moderator
Dodson pointed to Illumen’s research with Stanford SPARQ as a foundational reason for driving capital to long-overlooked founders and entrepreneurs. Their findings: Of the $4 trillion in allocator assets, less than 1.3% was managed by women and people of color.
He noted the research showed that underrepresented founders who had the most financial success were more likely to be disregarded by funders. “It’s a stunning finding that helped us better understand that when people outperform, they’re often overlooked and underestimated, which is a problem for those of us that love capital markets and outperformance, and also for those of us that love justice and inclusion in society.”
Addressing bias in financial markets is more than a matter of equity, Dodson said. It’s a pathway to realize latent economic value, especially among founders who are women and people of color. “We’re here together working against a system that cannot see people and appropriately or accurately value the value that they bring to financial markets,” he said.
As a CIO and member of investment committees at the Kresge Foundation and William Caspar Graustein Memorial Fund, Blanding said both organizations have considered how to embed DEI in their endowment and mission. “We’ve been explicit around our portfolio being mission-aligned but also really reflective of the citizenry of the world and of America.”
In her allocator roles, Blanding acts on the opportunity to bring overlooked founders to the funding table. “There are funds that we have found that we’ve encouraged our consultant to put on their platform … to be presented to a variety of allocators.”
Both foundations have stood by their commitment to invest for returns as well as diversity in the face of anti-DEI sentiment. “They want to make other people scared to lean in. We really haven’t changed our investment policy,” she said. “The reality is that these are amazing, amazing funds and firms and companies, and they also are bringing diversity.”
At Builders Vision, Reed helps guide investing in climate solutions at the family office for Lukas Walton, a Walmart family heir. While there is no DEI mandate for Builders Vision funding, she said the firm believes those values are an important part of being a climate investor. “Our investments should not be extractive,” she said. “We’re climate investors, but we do try to be as deliberate as we can about bringing the DEI framework to our work in a way that achieves two goals at once.”
Builders Vision has a number of investment committees that include eternal members, and each group had an open discussion of what to do in the face of DEI backlash. “No one wanted to withdraw, but we wanted to feel confident about the legality of what we were doing,” Reed said. “We had a lot of discussions about what is the realistic risk here, how can we continue to do exactly what we’re doing, if not more, but feel that we’ve mitigated risk as much as we can.”
Reed said legal guidance from internal and outside counselors has helped shape her approach during due diligence meetings and investment decision-making. “It opened up the aperture about what it means to be underrepresented in an industry,” she said. With that broader view, Builders Vision strives to fund entrepreneurs with solutions to challenges in their communities.
As a second-generation funder at the firm his father co-founded, Fernandes-Halloran builds on Halloran Philanthropies’ original goal to fund visionary leaders. In 2023, the nonprofit launched its Visions Fund to invest in innovators and address the racial wealth gap in Philadelphia, its home city.
“We’re supporting people who are leading things that are very well-conceived. And they’re usually living with the problem, so they understand the implications of investment in the world where they live much better than we ever could,” he said. “They’re out there, and they’re raising, and they’re not raising as much as they need to.”
The recent backlash against DEI funding and initiatives is a continuation of racial biases that are part of U.S. history, Fernandes-Halloran said. “We’d always love to talk about historical injustices if it’s a thing of the past. We’re living in it right now,” he said. “It’s OK to fight back, because this isn’t a small thing. This is a multi-hundred-year situation.”
By continuing to allocate to diverse founders, the Visions Fund advances Halloran Philanthropies’ mission to support and expand the global impact ecosystem. “We just continue to invest in the people who are overqualified for the amount of money they’re raising in their funds. And those people always seem to be people of color and women,” Fernandes-Halloran said.
Listen to the episode for the full discussion:
Don’t miss out! Subscribe to Money + Meaning on Apple Podcasts, Stitcher, TuneIn, Spotify, or anywhere else you find podcasts.
Listen to more episodes of Money + Meaning here.
