Goldman Sachs quietly ends diversity investment program after fulfilling $1 billion goal
Good morning, Broadsheet readers! A U.K. ads council objects to ads it says objectify women, an all-female city council takes power, and Goldman Sachs ends Launch With GS. Have a thoughtful Thursday.
- From launch to sunset. Over the past five years, Goldman Sachs's program Launch With GS has been a well-known player in the diverse funding ecosystem. In 2018, the investment bank pledged to invest $500 million—later upped to $1 billion—in companies and funds led and founded by women and people of color.
Now, Goldman has shut down Launch With GS, saying that it met its $1 billion investment goal in June 2023. Regina Green, a 17-year Goldman vet who was the most recent head of the program, announced her departure from the bank last week.
What's unusual about the situation is that Goldman didn't celebrate the milestone with a big, flashy announcement. Instead, it quietly updated Launch With GS's website to the past tense and reassigned a handful of staffers working on the program to other roles.
After I contacted Goldman about the end of the program, the bank connected me with Asahi Pompey, its global head of corporate engagement and foundation president. She calls Launch With GS a "success story" and says that the principles behind Launch With GS—finding "fantastic investments" from a more diverse pipeline—are now integrated into Goldman's asset and wealth management division.
The firm is pivoting its diversity focus to One Million Black Women, its 2021 pledge to invest $10 billion in investment capital and $100 million in philanthropic aid to address gender and racial bias faced by Black women. While Launch With GS focused on venture investments, One Million Black Women invests across a wider array of asset classes.
The sunsetting of Launch With GS comes in a tough market for founders and emerging managers. Funds raised by emerging managers declined by almost 35% between 2021 and 2022. In 2023, emerging managers secured less than $20 billion in commitments for the first time since 2016.
Read my full story here.
Emma Hinchliffe
emma.hinchliffe@fortune.com
@_emmahinchliffe
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