Bank of America Corp has announced that it is increasing its commitment to equity investments in funds led by minority and women entrepreneurs. The initial commitment of $200 million has now been raised to over $500 million. The bank has already provided equity to more than 150 funds, resulting in investments in over 1,000 companies across 40 states. These companies, led by 1,500 diverse entrepreneurs, employ over 21,000 people.
Tram Nguyen, Global Head of Strategic and Sustainable Investments at Bank of America, explained that the company’s focus is on supporting women and diverse entrepreneurs. The capital provided to under-resourced entrepreneurs aims to unlock their potential for local business growth and economic opportunity.
Many of the fund managers benefiting from Bank of America’s investments have previous experience founding businesses or investing as part of larger funds. They are now leveraging their expertise to establish their own funds.
One such fund is Zeal Capital Partners, founded by Nasir Qadree, which offers resources to help founders scale their businesses to the next level of growth. Zeal Capital Partners has been an early investor in Esusu, one of the few Black-owned unicorns—unlisted companies with a valuation of $1 billion.
The increased commitment by Bank of America reflects a broader trend among U.S. banking giants to expand their racial-equity initiatives following the global protests sparked by the killing of George Floyd in 2020.
According to Nguyen, each time the bank supports a minority or women-led fund, those funds, in turn, support diverse entrepreneurs, contributing to the advancement of racial equality and economic opportunity—a key goal for Bank of America.
