The Allstate Corporation has launched its first emerging manager programme to invest with smaller private equity and private real estate equity asset managers, with a focus on minority- and women-owned firms.
"We believe Allstate is leading the insurance industry in establishing this emerging manager investment programme," says Edgar Alvarado (pictured), Allstate's group head of real estate equity. "We see this programme as our farm team – a way to identify the next generation of investment stars, break down the high barriers to entry for these talented managers, and have Allstate be a catalyst in the success of emerging managers. Just as important, Allstate expects its socially responsible investments to achieve strong returns – we truly can say we do well by being a force for good."
The Allstate programme will be administered by the Customised Fund Investment Group (CFIG). Allstate and CFIG are seeking managers with strong investment track records and who are raising their first, second or third institutional funds and with less than USD500m in assets under management. In addition, at least 33 per cent of a participating firm will be owned or controlled by women and/or minorities, or at least 50 per cent of fund carried interest will be paid to women or minority staff.
The programme's fund managers will identify investments in the US that meet Allstate's desired risk-return profile.