Ariel Alternatives, a private asset management firm affiliated with Ariel Investments LLC, is making waves in the financial sector with the closing of $1.45 billion in funding for “Project Black.” Project Black is Ariel Alternatives’ first private equity initiative and it is expected to invest in middle-market companies with $100 million to $1 billion in revenue with the intention of aiding in the process of creating a new class of Black and LatinX entrepreneurs.
Ariel Investments is a Black-owned business founded by John W. Rogers, Jr. who serves as the company’s chairman, co-CEO and Chief Investment Officer. Rogers founded the company in 1983 to invest in undervalued small-and medium-sized companies. He also has Mellody Hobson by his side who serves as the company’s co-CEO and President.
Part of Hobson’s duties is to oversee the management, strategic planning and growth of Ariel Investments which is what led to the development of “Project Black.” Ariel Alternatives is being led by Leslie A. Bun who is the founder and a former leader of Hamilton Lane. Kirkland and Ellis LLP serve as legal advisors on fund formation for the initiative while the McKinsey Institute for Black Economic Mobility’s research and insights helped to inform Project Black’s strategy.
The initiative was first announced in February 2021 and has been on a path of success since. In April 2022, Project Black acquired Sorenson which is the leading U.S. communications provider for people who are deaf and hard of hearing. With Project Black’s acquisition of the company, the percentage of minorities that existed on a leadership level rose from only 3 percent to 43 percent.
Project Black recently reached the billion-dollar mark this February and will leverage the funds committed from partners and co-investors that span various industries including healthcare, technology, consumer retail and energy. Lowe’s Companies Inc., Qatar Investment Authority. Salesforce Inc., Truist Financial Corporation, Walmart Inc. and more have all signed on to be a part of the fund. Each investor has committed $100-$200 million over the fund’s nominal seven-year investment period. JPMorgan Chase & Co. also plans to invest up to $200 million in future deals.
Leslie Brun sees Project Black as a means to lessen the racial wealth gap. “Our goal is to help close the racial wealth gap by creating minority-owned businesses of scale through access to both capital and customers,” stated the Ariel Alternatives CEO. While Ariel Investments CEO, Mellody Hobson believes that the initiative will help to scale change in the investment sector. Hobson stated that Project Black, “will redefine what it means to be a minority-owned business in the United States. We are grateful to our investors who share our mission.” Ultimately, within the next 10 years, Project Black hopes to create 100,000 jobs for underrepresented minority employees.
