April 13, 2024
Black Private Equity And Venture Capital Firm Fairview Capital Sells Minority Ownership Stake To New York Life
New deal is expected to help Fariview Capital spur growth with venture capital firms, along with diverse and emerging fund managers.
Fairview Capital Partners has sold a minority ownership stake to mutual life insurance giant New York Life.
With Fairview, New York Life buys into one of the nation’s largest Black-owned private equity and venture capital investing firms. Since its founding 30 years ago, Fairview has amassed over $10 billion in assets under management. The firm invests on behalf of institutional investors like public and private pension plans, foundations, and endowments, per a news release. The financial terms of the deal were undisclosed.
Fairview told BLACK ENTERPRISE that the deal will help spur the West Hartford, Connecticut-based firm’s overall growth. The company’s top executives further shared what the deal means for the business.
Fairview Co-Founder Larry Morse stated, “New York Life’s partnership and capital will create even more opportunities for Fairview. This includes accelerating our growth and expanding our investing with the industry’s foremost venture capital firms, along with the leading diverse and emerging fund managers.”
In her statement, Fairview Co-Founder JoAnn Price added, “We will also continue to build on our commitment to transforming business and culture in the venture capital and private equity industry as we work to unlock additional value for our investors.”
Fairview disclosed that the firm is focused on expanding its existing business in the venture capital, diverse and emerging managers, and co-investment categories. The relationship with New York Life may allow Fairview to innovate further and enter new or existing adjacent categories in the future.
Fairview Capital is No. 2 on the BE Private Equity list. The company’s fresh accord is immense as New York Life is a Fortune 100 company and the nation’s largest mutual life insurance company.
Tony Malloy, executive vice president and chief investment officer at New York Life, stated, “New York Life and Fairview are very much aligned in terms of our shared core values and missions to build and sustain meaningful economic outcomes over the long term while also 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 evolution as pioneers in the industry.”
Two years ago, investment vehicles run by Fairview and Ariel Investments got a combined $25O million commitment from billionaire Steve Ballmer. This was part of the $400 million the former Microsoft Corp. CEO and his wife, Connie Ballmer, invested in four vehicles focused on helping cure insufficient capital accessible to Black entrepreneurs.
It was stated the partnership with New York Life further solidifies Fairview’s continued leadership and longevity in the market. Co-founders Price and Morse and managing partners Kola Olofinboba, Alan Mattamana, Aakar Vachhani, and partner Kwesi Quaye will remain in control as Fairview’s majority owners.
Since 2021, New York Life has committed $200 million to Fairview tied to the mutual life insurer’s initial $1 billion impact investment to help bridge the racial wealth gap by investing in underserved and undercapitalized communities.
Through that initiative, New York Life stated it made various commitments to diverse and emerging fund managers supporting dozens of businesses, resulting in several hundred impacted companies overall. Further, Fairview’s Morse serves on New York Life’s Impact Advisory Board.