New York Life is investing some of its $702 billion in assets in projects that could help close the racial wealth gap in the United States.
The New York-based life insurer said Tuesday it will commit $1 billion to the impact investments effort over three years.
The company said it will focus on backing small businesses, affordable housing projects and community development projects.
New York Life will start by putting $150 million in a fund to be managed by Fairview Capital. The fund will invest in an average of $10 million in 15 different venture capital and limited partnership deals. Each of those deals will provide financing for dozens of businesses, according to New York Life, which predicts the Fairview Capital alliance will invest in several hundred businesses.
The company has picked Martin King, the head of its investment credit team, to run the program, along with continuing to manage $70 billion in bonds and other fixed-income investments.
Tony Malloy, chief investment officer at New York Life, said in a statement that COVID-19 has made America's racial disparities especially glaring.
