Illumen Capital has announced it has raised $168 million, allowing the firm to address systemic equity and reduce racial and gender bias.

“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,” Daryn Dodson, managing director of Illumen Capital, said in a statement. “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.”

The Ford Foundation and the W.K. Kellogg Foundation are among a group of more than 100 investors. Illumen Capital's Fund II seeks to invest across four themes: education, health and wellness, climate and sustainability, and financial inclusion.

Illumen Capital is a Black-owned and led manager dedicated to achieving racial and gender equity across investing.

“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,” Ford Foundation head of mission investments, Roy Swan, said in a statement. “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.”