Fairview Capital: A Legacy of Diversity in Venture Capital Investment

JoAnn Price, co-founder of Fairview Capital, has been a pioneer of diversity, equity, and inclusion in the world of private equity. With her co-founder Laurence Morse, they established Fairview Capital with the goal of demonstrating to institutional investors like public pension funds and endowments that talent is universal and investing isn't a zero-sum game.

• They believed that competition is essential for a successful marketplace, highlighting the need for diverse perspectives and strategies in the investment landscape.

Fairview Capital's Investment Strategy: Building a Fund of Funds

Fairview Capital's unique approach centers around a fund of funds model. This strategy allows them to aggregate capital from institutional investors and invest in a portfolio of other investment funds, rather than directly in companies.

• This approach not only enables Fairview to access large pools of capital but also provides valuable data on the performance of diverse fund managers.
• Their focus on diversity is not just a social responsibility but a strategic advantage. They believe that a broader talent pool leads to better investment outcomes, and they demonstrate this through their track record.

Overcoming Challenges: Educating Institutional Investors

While Fairview Capital's approach has been successful, it wasn't without its challenges. Price and Morse faced significant resistance from institutional investors, who were accustomed to working with the same networks and had yet to embrace the potential of diverse-led funds.

• Fairview actively works to educate investors about the value proposition of investing in diverse fund managers, presenting data and case studies demonstrating the strong performance and returns achievable through their approach.

Navigating the Evolving Landscape of Venture Capital Investment

The venture capital industry is constantly evolving, presenting both opportunities and challenges for Fairview. Over time, they have shifted their focus towards investing in venture capital funds, recognizing the growing demand for fund of fund structures in this space.

• They have also expanded their offerings to include single-client funds of funds, catering to investors with specific investment strategies and goals.

Building a Diverse Team: A Cornerstone of Success

Fairview Capital's commitment to diversity extends to its internal team as well. They prioritize a diverse team with a range of backgrounds, experiences, and perspectives, believing that this approach fosters innovation and broader market insights.

• This inclusive approach not only strengthens their investment capabilities but also sets an example for the industry.

Addressing the Myth of a Limited Pipeline: Demonstrating the Value of Diverse-Led Funds

A common misconception among institutional investors is that there is a limited pipeline of diverse-managed funds. Fairview Capital actively dispels this myth by providing investors with data and reports showcasing the numerous minority- and women-owned firms that are actively seeking capital.

• Their efforts are geared towards educating investors and facilitating connections between institutional capital and diverse fund managers.

Fairview Capital's Continued Impact: Fostering Diversity in Venture Capital

While the venture capital industry has made progress in diversifying its investor base, Fairview Capital remains committed to its mission of promoting inclusion and opportunity. They continue to advocate for greater diversity in the investment landscape, working to address the persistent biases that hinder the growth of diverse-led funds.

• They recognize the importance of emerging managers, particularly in the venture capital space, and actively support their growth and success.
• Through their dedication and impactful work, Fairview Capital continues to shape the future of venture capital, creating a more inclusive and equitable landscape for all.