Bank of America Corp. (NYSE: BAC) said it has committed more than$500 million in equity investments to minority- and women-led funds, more than doubling its initial $200 million investment in 2020.
BofA, which has branches throughout the Bay Area. has provided equity to more than 150 funds, a jump from 40 private funds in January 2021. With the equity boost, the funds have invested in more than 1,000 companies across 40 states. Those companies are led by 1,500 diverse business owners and employ more than 21,000 people, BofA said.
The $500 million commitment is part of Bank of America's four-year, $1 billion pledge announced in 2020 to address economic and social disparities heightened during the Covid-19 pandemic. The $1 billion accelerates work in the economic mobility and workforce development programs that BofA already supports.
BofA did not say if any of the funds were based in the Carolinas, however, it highlighted two within other markets that have received its equity investment.
Washington, D.C.-based Zeal Capital Partners, founded by Nasir Qadree, is among the 150 funds BofA has supported. The venture capital fund provides underserved founders the resources needed to scale their business. For example, it is an early investor in New York-based Esusu, a fintech platform and now one of the few Black-owned unicorns, according to BofA.
Another one of the funds is Chicago-based Chingona Ventures, an early stage VC firm led by Samara Hernandez. It was the only active fund in the Midwest launched and led by a Latina amid BofA's commitment, the bank said.
Tram Nguyen, global head of strategic and sustainable investments at BofA, said the bank is working to address challenges diverse entrepreneurs face as they start their businesses, such as lack of access to capital.
"We want to empower the talented fund managers who keenly understand how to identify and support those business owners," he said. "Each time we support a minority- or women-led fund, they in turn support diverse entrepreneurs, which ultimately helps us toward achieving our goal to advance racial equality and economic opportunity."
BofA has also doubled its minority depository institution investments, providing an additional $100 million last October to support low- to moderate-income communities. The MDIs, part of BofA's portfolio of community development financial institutions, provide financing in underserved areas. Its $2 billion-plus portfolio includes more than 21 MDIs.
