The Black developers Crain’s interviewed all agree the federal and state governments can provide greater incentives for institutional investors to provide Black businesses with necessary capital. But the greater, more substantive changes must come from the institutional investors themselves, in how they hire and what they aim to do with their money.
One guiding light can be found at Goldman Sachs’ Urban Investment Group. Led by Margaret Anadu, one of the few Black American women in finance, the fund manages a $4 billion portfolio and invests $1.5 billion each year.
Marshall first tapped Anadu’s Urban Investment Group for $20 million in 2007. Since then his firm has been able to source $1 billion from her team.
“We raised $10 million from a family office, but I don’t think we’d have the trajectory we’ve experienced without Margaret Anadu’s Urban Investment Group,” Marshall said. “It would’ve been quite difficult, quite frankly.”