MassMutual kicks off $50 million pledge to aid black-owned businesses

MassMutual, a major player in the life insurance business initiated a $50 million pledge to promote job creation and business development for various entrepreneurs. The fund will be split evenly between two capital sleeves, MMCF Growth and MMCF Tech. The MMCF Growth is a $25 million community growth sleeve to target equity and deficit investments for Black-owned, founded, or operated businesses in Massachusetts and Boston.

The MMCF Tech with its $25 million technology sleeve target equity investments also covering Massachusetts and Boston. MMCF will assemble a portfolio of early and mid-stage firms with an investment range of $250,000 to $2.5 million. The early early-stage firms must show a concrete proof of concept and significant market traction or revenue. Investment decisions according to MassMutual official's report will take into consideration strong leadership teams and place priorities on racial diversity for those in the growth sleeve to improve access to capital for the Black community. 

The MMCF claims its sole aim is to act as a momentum for the less economically developed areas of Massachusetts to grow via employment and business. Inherently resulting in solid and reliable investment results for entrepreneurs along with social and community goals will be a focus. This new dedication by Massachusetts Mutual Life Insurance Company (MassMutual) is coming up as companies in America have pledged billions of dollars towards racial equity. These pledges were part of a major strategy to combat rapidly growing concerns about systemic racism following the police killing of George Floyd and the Black Lives Matter protests. The company which was incorporated in 1851 asserts that its current action is acted out with just one goal, which is helping people secure their future and protect their loved ones. 

Impact Investment Portfolio Manager at MassMutual who runs the MMCF, Rilwan Meeran stated, " Impact investing at MassMutual seeks to create a positive social and environmental impact that is measurable while also making market-rate financial returns. Philanthropy alone cannot love our society's problems; institutional capital investment should also play a role."