Illumen Capital Announces Approximately $170 Million Fund II to Create a More Optimal and Inclusive Asset Management Industry

Illumen Capital, an impact fund of funds addressing systemic inequity by reducing racial and gender bias in investing, has successfully raised a $168 million Fund II, allowing the firm to further scale its efforts to build a more optimal and inclusive asset management industry.

Illumen Capital II, LP will combine its investment capital with evidence-backed tools and strategies designed to help fund managers reduce racial and gender bias, while aiming to optimize their financial performance.

“Following our nation’s racial reckoning in the summer of 2020, institutional investors made bold proclamations of investing in diverse managers and entrepreneurs; unfortunately funding of diverse-led entities has receded drastically over the past year,” said Daryn Dodson, Managing Director of Illumen Capital. “Today’s close of Illumen Capital’s Fund II reflects the strength of our thesis, limited partners’ trust in the firm’s differentiated strategy, and the incredible value that overlooked and underestimated managers can bring to investors.”

Ford Foundation, and W.K. Kellogg Foundation led the fund, which had capital from over 100 investors, showcasing a breadth of interest and belief in Illumen Capital’s mission of leveraging powers as investors to reduce bias in venture capital and private equity decision-making.

“Advancing equity and inclusion in asset management goes beyond breaking down barriers and diversifying the talent in the field. It’s about broadening perspectives, expanding ideas, and strengthening strategies for better outcomes across the board,” said Ford Foundation Head of Mission Investments Roy Swan. “Illumen Capital’s evidence-backed approach to help fund managers optimize their performance is much needed, and this round of funding signals that the strategy is working.”

Illumen Capital’s Fund II was oversubscribed, surpassing the initial target by nearly $20 million, enabling the firm to further scale its efforts developed following the completion of its $88 million Fund I. Showcasing a high conviction in thesis and strategy, this fund seeks to invest across four themes: Education, Health & Wellness, Climate & Sustainability and Financial Inclusion. Furthermore, Fund II aims to deepen relationships with many managers from Fund I, creating stronger leverage points surrounding their active engagement in bias reduction work.