Clients of Black-led financial services firm Loop Capital and Goldman Sachs will have access to new money market fund share classes that will help fund scholarships for Black women; Google made a $500 million catalytic seed investment and played a foundational role in developing the fund
NEW YORK – September 15, 2021 – Loop Capital Markets (“Loop Capital”), a Black-led investment bank, brokerage and advisory firm, and Goldman Sachs announced today a partnership to offer cash management solutions that will allow companies to advance racial equity by creating economic opportunity within diverse communities and providing funding for educational and career development for Black women in science, technology, engineering, mathematics (STEM) and related fields.
The two money market fund share class offerings will be available exclusively to clients of Loop Capital and Goldman Sachs and a portion of the revenue from the share classes will go to causes that have an impact on increasing racial equity. The Loop Capital share classes will be offered as part of the Goldman Sachs Financial Square Government Fund (LEIXX) and Goldman Sachs Financial Square Treasury Instruments Fund (LDIXX), which are Goldman Sachs Asset Management’s two largest US money market funds. Google has made a $500 million catalytic seed investment in the funds and played a foundational role in developing the fund.
Kourtney Gibson, President of Loop Capital Markets, said: “We are delighted to have partnered with Goldman Sachs and Google on this important initiative. This launch creates a partnership for corporations to use the cash on their balance sheets to further opportunities for Black women and have a real, lasting impact on communities far and wide.”
The partnership will ensure the products play a role in promoting racial equity in financial services and beyond as part of Goldman Sachs’ One Million Black Women initiative, a $10 billion investment strategy alongside $100 million in philanthropic support to help narrow opportunity gaps and positively impact the lives of at least one million Black women over the next decade.
“This launch with Google demonstrates our shared commitment to both partner with organizations like Loop Capital that are led by Black women and to create commercial solutions to advance racial equity,” said Margaret Anadu, Global Head of Sustainability and Impact for Goldman Sachs Asset Management. “Rooted in our belief that diversity is foundational to success, this partnership will create opportunities for young Black women pursuing careers in STEM and related fields, aligning directly with our One Million Black Women initiative.”
Loop Capital and Goldman Sachs will make an annual donation from the net revenue they earn from the share classes to fund organizations creating opportunities for Black women, including funding educational and career development. Scholarship recipients will also be provided with access to comprehensive training, networking opportunities, career coaching and mentoring.
Juan Rajlin, Corporate Treasurer for Alphabet and Google said: “We’re proud to be at the forefront of incorporating responsible investing into the money market fund ecosystem, translating our racial equity commitments into lasting and meaningful change. This share class, distributed by Loop Capital, will create economic opportunity within diverse communities and promote educational and career development for Black women in STEM. We hope to inspire other corporates to invest in these types of opportunities to make a positive impact.”
The new share classes build upon Goldman Sachs’ commitment to furthering its relationship with diverse broker-dealers, including veteran- and female-led firms, most recently R. Seelaus as well as Drexel Hamilton. In 2018, Goldman Sachs Asset Management became the first investment manager to offer a money market fund with a trading strategy that seeks to place purchase orders for portfolio transactions with women-, minority- and veteran-owned broker-dealers, subject to Goldman Sachs’ duty to seek best execution for fund orders.
Google is committed to helping create sustainable equity and economic opportunity for all. This investment builds upon more than $320 million it has committed to organizations working to address racial inequities, including Google’s partnership with Opportunity Finance Network to support CDFIs, and prior investments in money market funds distributed by diverse-led CDFIs and minority depository institutions (MDIs).
About Goldman Sachs Asset Management
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.
About Goldman Sachs’ One Million Black Women Initiative
Goldman Sachs’ One Million Black Women initiative, is a $10 billion investment strategy alongside $100 million in philanthropic support to help narrow opportunity gaps and positively impact the lives of at least one million Black women over the next decade. Launched in partnership with Black women-led organizations, this initiative from Goldman Sachs, One Million Black Women, will drive investment in housing; healthcare; access to capital; education; job creation and workforce advancement; digital connectivity; and financial health.
About Loop Capital Markets
Loop Capital is a full-service investment bank, brokerage and advisory firm that provides creative capital solutions for corporate, governmental and institutional entities across the globe. Loop Capital was founded in 1997 and is now one of the largest privately-held investment banks in the U.S. and the largest minority or women owned investment banking firm in the world. Loop Capital’s reputation for integrity and service – coupled with the firm’s track record of success – has allowed them to serve an expanding number of clients from coast to coast and globally. The firm’s uncompromising commitment to excellence means that clients get superior, focused service across the entire platform.