Two large financial firms are teaming up to provide classes geared towards the educational and career development of Black women in STEM and related fields.
Loop Capital Markets, founded in 1997, is a full-service investment bank, brokerage and advisory firm helping link corporations, government and institutions with capital. Now, one of the largest privately-held investment banks in the country is partnering with Goldman Sachs to help bridge the gaps in racial equity.
Together, both companies will combine to create market fund share class offerings for the clients of the Black-led financial firm, Loop Capital Markets, which is also the largest minority- or women-owned investment banking firm in the world. To further their cause, Loop Capital and Goldman Sachs will use some of the revenue generated from the classes to invest in other causes that also aid in growing racial equity.
Internet giant Google also made a $500 million investment and provided assistance in developing the fund in its beginning stages. Google has been active in addressing racial inequalities. The investment with Loop Capital and Goldman Sachs adds onto the more than $320 million the internet conglomerate has already committed to organizations working to address racial inequities.
“We are delighted to have partnered with Goldman Sachs and Google on this important initiative. This launch creates a partnership for corporations to use the cash on their balance sheets to further opportunities for Black women and have a real, lasting impact on communities far and wide,” says Kourtney Gibson, president of Loop Capital Markets.
For many companies, racial equity and diversity have been hot button issues during recent years. With the continually growing wealth gap, African American women, yet topping the class in entrepreneurship, are steadily left behind in the greater economic makeup of the country. The coronavirus pandemic helped to shine a light on growing disparities for minorities, especially Black women. Together, Loop Capital and Goldman Sachs, alongside Google, are making strides to positively impact Black women in STEM.
“We’re proud to be at the forefront of incorporating responsible investing into the money market fund ecosystem, translating our racial equity commitments into lasting and meaningful change. This share class, distributed by Loop Capital, will create economic opportunity within diverse communities and promote educational and career development for Black women in STEM,” says Juan Rajlin, corporate treasurer for Alphabet and Google. “We hope to inspire other corporations to invest in these types of opportunities to make a positive impact.”
The share classes will be distributed by Loop, but will be offered as a part of the Goldman Sachs Financial Square Government Fund and the Goldman Sachs Financial Square Treasury Instruments Fund. With the help of these classes, the partnership hopes to further the interest and careers of Black women in science, technology, engineering and mathematics.
“This launch with Google demonstrates our shared commitment to both partner with organizations like Loop Capital that are led by Black women and to create commercial solutions to advance racial equity,” says Margaret Anadu, global head of sustainability and impact for Goldman Sachs Asset Management. “Rooted in our belief that diversity is foundational to success, this partnership will create opportunities for young Black women pursuing careers in STEM and related fields, aligning directly with our One Million Black Women initiative.”
In 2021, Goldman Sachs, in response to the financial impact of the pandemic on communities of color, launched an initiative geared towards investing in Black women to help create economic opportunities for them. The One Million Black Women initiative commits to an investment of $10 billion as direct investment capital as well as $100 million in philanthropic capital over the next ten years to help combat gender and racial biases for Black women.
As an added feature of the partnership, Loop Capital Markets and Goldman Sachs will donate yearly from the net revenue earned from the share class offerings to additionally provide funding for organizations who are creating opportunities for Black women. Scholarship recipients will also be provided with access to comprehensive training, networking opportunities, career coaching and mentoring.