The Ballmer Group, a CMF member, has announced a $400 million investment with four organizations focused on Black investment managers and Black businesses. 

Co-founders of The Ballmer Group, Steve and Connie Ballmer, are pursuing a fund-of-funds strategy with two partners that have demonstrated a strong historical track record in the space.  

These partners were selected based on their demonstrated ability to execute the fund-of-funds strategy at scale, drive at or above market rate investment returns, and partner effectively with emerging fund managers.

The investments will go exclusively to Black-led venture capital and private equity funds, and at least 30% of the underlying portfolio companies will be led by Black entrepreneurs/founders. The partnerships include a commitment from Goldman Sachs and Fairview Capital to amplify the impact of the funds with additional capital.

“This is an incredible opportunity to invest in an undercapitalized market,” Steve Ballmer said. “We hope it will signal to other investors the value in giving Black investment managers access to capital. There are great people out there, and we are excited to catalyze this segment and look forward to excellent returns.”

According to a Ballmer Group press release, the approach aligns with Ballmer Group’s philanthropic focus on improving economic mobility in America, but these investments are not philanthropic. They use market-based methods to drive economic mobility.

“We know that systemic racial inequities impede access, opportunity and outcomes in economic mobility – especially for Black families and communities,” Connie Ballmer said.

According to the press release, the investment thesis is built in part on the understanding that the vast majority of investment decisions are now made by White investment managers, leaving gaps in the market.

“We haven’t traditionally focused on investments and private equity, but we are just incredibly excited to take this approach,” Ballmer said.

Want more?

Read the full press release.