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Publications
VI.
Success Stories Since We Last Met
Success Story
#1 - The Boeing Company:
Progress Investment Management Company selected with Northern Trust as the two
Manager-of-Managers of a new Boeing fund targeting the emerging investment
manager community.
Name of Initiative:
The Boeing Prime Opportunities Fund
Summary:
It has been reported that planning for the "Boeing Prime Opportunities Fund" had
been underway since 2003. However, Reverend Jackson's work in championing the
movement toward increased investment with minority asset managers had an impact,
as it helped to create an environment in which such an opportunity could take
shape.
The Boeing Prime Opportunities Fund
Boeing Chief Financial Officer James Bell set the mandate and expressed his
intentions during the 2004 Wall Street Project Conference to increase investment
with minority managers. In mid-June 2004, the Boeing Company announced its decision
to allocate $1 billion of its pension fund assets to emerging investment managers.
The theme of the fund reflected Boeing's desire to engage in earlier-stage, highquality
investments, increasing its exposure to smaller investment managers to
include minority and women-owned firms.
The Prime Opportunities Fund is Manager-of-Managers in structure. It was thought
that this method of fund management would allow Boeing to partner with investment
managers who specialized in the emerging manager space. In this way, Boeing
would increase its exposure to a diversity of investment managers.
Success Story: Progress Investment Management Company
Many firms were interviewed for the opportunity to manage the new fund. Two were
chosen: Northern Trust and Wall Street Project Trade Bureau Member, Progress
Investment Management Company. Progress and Northern Trust will split the $1Billion
investment pie equally. Each will
work to identify and engage smaller managers that include minority and womenowned
firms.
Success Story #2 - The Boeing Company
The Boeing Company becomes a customer of World Wide Technology
Summary:
World Wide Technology is a minority-owned firm based in St. Louis Missouri, and
is considered to be the largest minority-owned enterprise in the United States.
The company specializes in helping its government, Fortune 500 and automotive
customers rapidly build and deploy information technology infrastructure. David
Steward, Chairman of the Board, World Wide Technology, reached out to Reverend
Jackson to broker an introduction to key Boeing personnel. Boeing ultimately
became a customer of WTT. It is expected that 2004 earnings will surpass the
$1.1 Billion earned in 2003.
Success Story #3 - General Electric Company
General Electric Meeting of Minority Managers (Spring 2004).
Summary:
GE leadership, inspired, in part, by Reverend Jackson's call for increased investment
by majority firms with minority investment managers, organized a meeting at GE
headquarters of minority managers with key GE investment decision makers in Spring,
2004. This meeting was very significant. It allowed minority managers the opportunity
to
connect with GE investment professionals. Relationships struck there have resulted
in new business for some of the Wall Street Project's constituency.
Success Story #4 - General Electric Company:
Williams Capital and Blaylock & Partners serve as book runners on large GE
financing
Summary:
In November, 2004, Williams Capital and Blaylock & Partners were book runners
on
a $750M financing. Williams Capital leadership attribute this new business to
the
meeting of Minority managers held on-site at GE in Spring 2004.
Success Story #5 - General Electric Company
New business for Ariel Mutual Funds - GE becomes a Mid-Cap Client
Summary:
In 2004, Ariel was selected by GE to become part of their Defined Benefit plan.
Ariel credits Reverend Jackson's efforts to increase minority manager access
to key investment decision makers within GM with this new business.
Success Story #6 - General Motors
GM Meeting with Minority Investment Managers
Summary:
General Motors hosted a meeting of minority managers (on-site) following the
Wall
Street Project's 2004 conference. Attendees included GM's Treasurer, Head of
Asset Management, etc. - i.e., key investment personnel. Follow-up meetings with
minority managers allowed GM to communicate what they do and how they do it.
Members of the Wall Street Project Trade Bureau credit these meetings to creating
an environment in which they were able to make key connections that in some instances
led to new business.
Success Story #7 - General Motors
GM invests in Williams Capital Private Equity Fund
Summary:
General Motors Investment Management Company manages pension assets for
General Motors. The aforementioned individuals held meetings with other Minority
private equity firms. They opted to invest $20M in Williams Capital's private
equity
fund. Williams Capital Leadership credits Reverend's efforts to increase investment
with
minority managers for "creating an environment where minority firms can
compete at
the highest levels." Williams leadership views Reverend's work with corporations
on
behalf of minority managers as very influential.
Success Story #8 - General Motors
GM selects Ariel as the first Minority Mid-Cap Manager within its $20B Defined
Contribution Plan. Ariel products were also selected to be part of GM's 401K.
Summary:
In Spring 2004, Ariel leadership met GM representatives at a meeting of 40 minority
investment managers (that Reverend Jackson's helped to make possible) who were
instrumental in Ariel's ultimate selection and inclusion in GM's Defined Contribution
and 401K plans. Addition to GM's Defined Contribution Plan
As of November, 2004, The Ariel's Mid-Cap offerings were included in GM's
Defined Contribution Plan.
Addition to GM's 401K Plan
Ariel is also, as of November 1, 2004, is one of 60 or 70 funds (total), with
Ariel
offering 2 products within GM's 401K plan.
Success Story #9 - General Motors
GM selects Utendahl Capital Management, LP for cash management
Summary:
General Motors placed $50M with Utendahl for cash management.
Success Story #10 - General Motors
Harlem Auto Mall
Summary:
In June 2003, Reverend Jackson's work to bring the first auto dealership above
60th
street in 40 years, took a giant leap toward reality as Reverend, Mayor Bloomberg,
Richard Wagoner, and Alan and Robert Potampkin (investors in the project) held
a
press conference announcing details of a Harlem Auto Mart. The proposed structure
was said to accommodate 6 dealerships. The first four dealerships to sign-up
for the effort - Chevrolet, Saturn, Cadillac and
Hummer - were themselves expected to bring 250 jobs to the Harlem area. The auto
mall would be the largest automotive sales and service center in New York City.
The project is said to open in 2005. Minority Dealer Otis Thorton, who owned
a
Buick dealership in Brunswick, NJ, was selected by GM as the owner and operator
of the Chevrolet and Saturn dealerships.
Success Story #11 - General Motors
Harlem Auto Mall Bond work to MR Beal & Company
Summary:
MR Beal & Company was selected to work on a bond transaction related to the
Harlem Auto Mall project
Success Story #12 - MetLife Inc.
MetLife Inc. hired Atlanta Life Investment Advisors.
Summary:
Met Life, Inc. hired Atlanta Life's Asset Management Unit - Atlanta Life Investment
Advisors (ALIA) - to man gage $50M of MetLife's general account assets.
The deal nearly doubled ALIA's total assets at the time of the deal, from $67M
to
$117M. The two companies began working together in 2002 on the reinsurance side
of the business. At the time of the deal-signing, the companies (jointly) cover
more
than 800,000 employees with a combined $4B of life insurance in force.
Atlanta Life credits the work of the Wall Street Project, in its efforts to encourage
partnerships between majority firms and minority investment managers, for creating
an environment in which this deal could occur.
Success Story #13 - Raytheon Company
Raytheon Advisors Investment with MDL Capital Management, Inc.
Summary:
Raytheon hired MDL Capital Management to cover Fixed Income. MDL
successfully competed in a ‘horserace' - that keeps top earners and dismisses
lower performers - for four years.
MDL is no longer on the assignment. The interesting thing here is that the
relationship built and nurtured between the corporate client (i.e., The Trading
Partner) and the investment manager (i.e., The Trade Bureau Member). It is such
that when a certain level of performance is attained over a prescribed period
of time, Norm Pao, according to Steve Sanders, President, MDL, would invite MDL
back into the race.
Also interesting here is the fact that Steve Sanders credits the Wall Street
Project and Reverend's work to creating an environment where the partnership
could take place (a common theme in these stories).
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