Morgan Stanley finances impact-driven, minority-owned investment platform

Morgan Stanley has provided $100 million in capital to help the launch of Lafayette Square, an impact-driven and minority-owned investment platform. Founded by Damien Dwin in 2020, Lafayette Square was built to confront societal challenges with targeted investment strategies that drive measurable change and positive social impact in areas of financial inclusion, housing and jobs. Within financial inclusion, officials plan on making seed and stake investments in diverse investment managers and work with them to scale their business. Dwin, a Black American businessman, philanthropist and veteran investor, was a co-founder of Brightwood Capital Advisors. Prior to that, he served as head of North American Special Opportunities at Credit Suisse, in addition to being a trader at Goldman Sachs. Joining Dwin at Lafayette Square is a seasoned team of 17 professionals with an average 15 years of experience in financial services. The team includes Chief Risk Officer Phil Daniele, Chief of Staff Doug Ebanks, Head of Investor Relations Caitlin Mixter, Managing Director Ryan Ochs, Managing Director Joe Johnson, Director Casey Woo, and Vice President Mary Ann Raftery. The firm expects to grow to approximately 65 employees by 2022. In addition to employees, other equity holders in Lafayette Square include the Capricorn Investment Group’s Sustainable Investors Fund and the Schusterman Family Investments, both of whom will maintain seats on Lafayette Square’s fiduciary Board of Directors. “The history of finance is one in which far too many individuals, businesses and communities -- especially women and persons of color -- have been denied access to capital, resources and opportunity,” said Dwin in a prepared statement. “The economic fallout of COVID-19 and the social justice movement of 2020 have reinforced the inadequacies of the traditional financial paradigm and made a powerful case for a new, more inclusive investment model.” Thomas Nides, vice chairman of Morgan Stanley, commented on the ability of the Lafayette Square team to address societal challenges with ‘thoughtful and scalable investment solutions.’ He added that Morgan Stanley has a strong conviction on Dwin’s approach to enact meaningful change. The effort has also attracted the attention of the Ford Foundation, which has made a concerted effort to focus on diversity and inclusion initiatives in recent years. “People make the difference, capital makes change possible; and Lafayette Square connects the two,” said the President of the Ford Foundation Darren Walker. “Their new model combines the best facets of capitalism and humanitarianism to enable real change in communities trapped in cycles of poverty and to promote diversity among future generations of financial leaders.” "We're excited to support Damien in his vision to launch a new type of firm that will act as a model across finance," said Stacy Schusterman, chair of Schusterman Family Investments and chair of the Charles and Lynn Schusterman Family Foundation. "We have strong conviction in Lafayette's sustainable investment approach that aligns with our philanthropic efforts to strengthen communities and advance social equity in a dignified manner." Capricorn Investment Group has an impact-driven investment approach that is also aligned with Lafayette Square. "The Lafayette Square model takes a distinct approach in leveraging market forces to solve real problems in our country such as minority participation in finance and advancing racial equality," added, Ion Yadigaroglu, managing partner of Capricorn Investment Group.

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