New Summit Investments is excited to announce a new initiative to strengthen its commitment to investing in fund managers whose leadership teams are majority female or people of color. This initiative involves a partnership with Gratitude Railroad, a community-driven impact investment firm and ecosystem leader, which shares New Summit’s commitment to allocating capital to underrepresented fund managers.

The asset management sector has persistently failed to value diversity and inclusiveness. A 2019 study revealed that a mere 1.3% of the $69 trillion asset management industry is controlled by firms with majority female or people of color ownership. Nevertheless, academic and industry studies highlight that diverse managers often outperform industry benchmarks.

Through this partnership, New Summit and Gratitude Railroad are collaborating to source and underwrite historically excluded, underrepresented fund managers. New Summit is making investments from its New Summit Impact Fund III, and Gratitude Railroad is doing so from its Inclusive Capital Fund.

The partnership has already generated three mutual investments in female-led fund managers:

Good Growth Capital: an early-stage venture capital firm known for its expertise in finding, assessing, and cultivating complex science and tech start-ups

Firework Ventures: a Series A-focused venture firm investing in human-centered “future of work” startups that are working to drive economic and social mobility for all

Springbank Collective: an early-stage venture firm investing in startups that are building the infrastructure to improve the lived experience of women and working families

New Summit and Gratitude Railroad are united by a shared conviction that investing in the rising generation of emerging managers will not only generate positive impacts on society but will also strengthen investors’ portfolios. New Summit is thrilled to join forces with Gratitude Railroad to direct capital to this promising cohort of emerging managers.