In 2021, New York Life announced a $1 billion impact investment initiative to help address the racial wealth gap in America and expand economic opportunity more broadly, with a goal to invest these funds over three years. In the fall of 2022, just 18 months later, that milestone had already been met. Of the $1 billion, we committed approximately $300 million, $550 million, and $150 million in support of small businesses, affordable housing, and community development, respectively.
Since inception, our impact investment initiative has had a dual objective: deliver meaningful societal impacts while also generating investment returns that allow us to build and sustain programs that drive positive economic change over the long term."
—Tony Malloy, Chief Investment Officer and TWI Executive Sponsor
Chief Investment Officer and
TWI Executive Sponsor
“Since inception, our impact investment initiative has had a dual objective: deliver meaningful societal impacts while also generating investment returns that allow us to build and sustain programs that drive positive economic change over the long term,” says Chief Investment Officer Tony Malloy and TWI Executive Sponsor, Thus far, that’s exactly what we are experiencing, reinforcing the power of pursuing profits with a purpose.”
As our investments continue to be deployed and their impacts compound, the full effects of our long-term commitments won’t be realized for years. Nevertheless, impacts as of the end of 2022 include:
“A central component of our program focuses on collaborating with mission-aligned organizations with long track records of success and strong relationships with the communities we are trying to reach."
— Martin King, Managing Director, Head of Impact Investments and BOLD member.
Managing Director, Head of Impact Investments and BOLD member
“A central component of our program focuses on collaborating with mission-aligned organizations with long track records of success and strong relationships with the communities we are trying to reach,” says Martin King, Managing Director, Head of Impact Investments and BOLD member. “We created partnerships with some of the leading fund managers and nonprofits focused on closing the racial wealth gap, creating the space for New York Life to amplify the meaningful work they have been doing for years.”
For example, through a $200 million commitment in support of small businesses, New York Life is making 20-25 venture capital and growth equity limited partnership commitments in collaboration with Fairview Capital, a Black-owned asset manager co-founded by Laurence Morse, a pioneer in social impact investing. Under Morse’s leadership, Fairview invests with rigorously selected, diverse fund managers in Black-owned and other diverse businesses that traditional funders often overlook.
As part of our focus on housing, we have helped finance two brand new homeless shelters in New York City and much-needed upgrades to a third shelter to make a meaningful and measurable impact on homelessness in our hometown.
In 2017, New York City embarked on an initiative designed to transform its homeless shelter system titled “Turning the Tide on Homelessness,” with the dual goals of reducing homelessness and improving both the quality and efficacy of its shelters. Under the initiative, the Department of Homeless Services enters into long-term contracts with well-regarded operators and developers to construct or renovate buildings to use as shelters.
These “purpose-built” shelters, each containing about 100 units, are professionally staffed and offer amenities such as common recreation and workspaces as well as bike storage and laundry rooms. The objective is to lower costs and improve services available to the homeless population, versus the city having to lease and operate buildings itself or pay higher costs to use hotels to meet capacity demands.
Of the three shelters we’ve financed, two are brand new, ground-up developments for homeless individuals in Brooklyn and Queens. The third is the rehabilitation of an existing shelter in Brooklyn.
New York Life has also invested more than $300 million in low-income housing tax credits, providing key equity financing that is the foundation for new affordable housing construction. Additionally, we have committed $50 million each with trusted Community Development Financial Institution (CDFI) partners Enterprise Community Loan Fund and Century Housing Corporation to amplify their affordable housing lending programs and to increase the capacity of minority developers. Enabling individuals and families to stay in affordable homes gives them a chance to build savings, start a business, or send a child to college who will in turn earn an income higher than their parents — all of which creates and builds generational wealth.
“By partnering with diverse asset managers, CDFIs, and other mission-driven organizations, our long-term strategy is to scale New York Life’s initial $1 billion commitment over time,” explains Malloy. “Our goal is to develop, alongside our industry-leading partners, broad solutions and investment structures that will continue to deliver both investment returns and inclusive economic outcomes linked to job growth, health and wellness, and personal and household advancement.”
invested over 18 months to help address the racial wealth gap in America and expand economic opportunity more broadly
invested in support of affordable housing: Commitments for the creation of 15,000 units of affordable multifamily rentals, which are largely new builds and designed for low-income communities
invested in support of small businesses: Financed 100 small businesses across the U.S., the majority of which are owned or led by minority or women business leaders, through diverse and emerging fund managers
invested in support of community development: Financed three homeless shelters as part of New York City’s “Turning the Tide on Homelessness” initiative
Find out more how our impact investments have boosted endowments to Historically Black Colleges and Universities (HBCUs).
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