by Jeffrey McKinney
April 13, 2024
The new deal is expected to help Fariview Capital spur growth among venture capital firms as well as diverse and emerging fund managers.
Fairview Capital Partners has sold a minority stake in life insurance giant New York Life.
With Fairview, New York Life is buying into one of the nation's largest Black-owned private equity and venture capital investing companies. Fairview has amassed over $10 billion in assets under management since its founding 30 years ago. The company invests on behalf of institutional investors such as public and private pension funds, foundations and foundations. per press release. Financial terms of the deal were not disclosed.
Fairview told BLACK COMPANY that the deal will help boost the West Hartford, Connecticut-based company's overall growth. The company's top executives also shared what the deal means for the company.
Larry Morse, co-founder of Fairview, stated, “New York Life's partnership and capital will create even more opportunities for Fairview. This includes accelerating our growth and expanding our investments with the industry’s leading venture capital firms as well as the leading diversity and emerging fund managers.”
In her statement, Fairview co-founder JoAnn Price added: “We will continue to build on our commitment to transforming the business and culture of the venture capital and private equity industries as we work to create additional value for our investors create.”
Fairview announced that the company is focused on expanding its existing business in the venture capital, diversity and emerging manager and co-investment categories. The relationship with New York Life could perhaps allow Fairview to further innovate and expand into new or existing adjacent categories in the future.
Fairview Capital is No. 2 on the BE Private Equity list. The company's new agreement is huge as New York Life is a Fortune 100 company and the largest mutual life insurance company in the country.
Tony Malloy, Executive Vice President and Chief Investment Officer at New York Life, stated: “New York Life and Fairview are very similar in our shared core values and missions to achieve and sustain meaningful long-term economic outcomes while generating positive investment returns for clients .”
He added: “Our investment is a testament to our long-standing relationship and Fairview’s established and storied track record. This investment will support the Fairview team in furthering their growth and development as pioneers in the industry.”
Two years ago, the investment vehicles operated by Fairview and Ariel Investments received a commitment totaling $250 million from billionaire Steve Ballmer. It was part of the 400 million that the former CEO of Microsoft Corp. and his wife, Connie Ballmer, invested in four vehicles aimed at addressing the lack of capital available to black entrepreneurs.
The partnership with New York Life was noted to further solidify Fairview's continued leadership and longevity in the market. Co-founders Price and Morse, as well as managing partners Kola Olofinboba, Alan Mattamana and Aakar Vachhani, and partner Kwesi Quaye, will retain control as majority owners of Fairview.
Since 2021, New York Life has committed $200 million to Fairview, tied to the mutual life insurer's first $1 billion impact investment, to bridge the racial divide by investing in underserved and undercapitalized communities contributing to the wealth gap.
New York Life said it has made various commitments to diverse and emerging fund managers as part of this initiative, each supporting dozens of companies, resulting in several hundred companies being affected in total. Additionally, Fairview’s Morse serves on New York Life’s Impact Advisory Board.