Last year, Goldman Sachs pledged to help further racial wealth equity. Looks like they’re partnering up with Black-owned asset management firm Loop Capital and Google to hold steady on their promise.
As a part of their One Million Black Women initiative, the industry giants launched a new money market fund that will benefit Black women pursuing careers in STEM. The aim will be to diversify the asset managerial talent pool.
“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,” said Kourtney Gibson, President of Loop Capital Markets.
The two money market fund share class offerings will be available exclusively to clients of Loop Capital and Goldman Sachs and a portion of the revenue from the share classes will go to causes that have an impact on increasing racial equity. The Loop Capital share classes will be offered as part of the Goldman Sachs Financial Square Government Fund (LEIXX) and Goldman Sachs Financial Square Treasury Instruments Fund (LDIXX), which are Goldman Sachs Asset Management’s two largest US money market funds. Google has made a $500 million catalytic seed investment in the funds and played a foundational role in developing the fund.
The partnership will ensure the products play a role in promoting racial equity in financial services and beyond as part of Goldman Sachs’ One Million Black Women initiative, a $10 billion investment strategy alongside $100 million in philanthropic support to help narrow opportunity gaps and positively impact the lives of at least one million Black women over the next decade.
Loop Capital and Goldman Sachs also pledged to make an annual donation from the net revenue they earn from the share classes to fund organizations creating opportunities for Black women, including funding educational and career development. Scholarship recipients will also be provided with access to comprehensive training, networking opportunities, career coaching, and mentoring.
“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,” Juan Rajlin, Corporate Treasurer for Alphabet and Google said. “This share class, distributed by Loop Capital, will create economic opportunity within diverse communities and promote.”