YouSaid · the spoken record

Daryn Dodson

lines on the record: 69
first: 2020-12-14
most recent: 2020-12-14
sittings or episodes: 1
sources: podcast

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“In the understanding and connection to activists and are all really important parts of creating change in society and that these various different tools are important to use at different times and to deploy, but an understanding of each of them not separate from the other, but being woven together in a systems orientation are incredibly important to advancing some of the issues that we've been talking about today.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the things that I felt that I would want to do early in my career is. Used a lot to create policy change as a public policy major. And although I still think that's a really worthy place to spend time, one of the things that happened is that although many of the laws that we passed at the Center for Responsible Lending are still on the books, business leaders had incredible influence within political structures and pushed those laws that sometimes would save low-income families and particularly black and Latino families billions of dollars so that they could continue to extract value from those communities in ways that had a lot of structural racism in them. So I think the learning is that intersectionality in solutions having a really strong policy toolkit with the influence of business rooted.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Like Einstein would say, if you're trying to solve a problem and you have 60 minutes, spend 55 minutes trying to frame the problem. And I think that when you're looking at the things that you care about and the vulnerabilities in the system that you're trying to solve or create a solution in, it's okay to spend a lot of time and iterate some action, but a lot of time thinking about what that specific problem that you want to solve is and then spending a lot of energy in your life and your commitment trying to solve that problem. But I think that what I really appreciated about many great entrepreneurs is how intimately they understand the problems that they're trying to solve and how much work they've put into framing that and understanding it.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“I believe that in an early career following your passion is incredibly important and knowing when you're awake in a job or in a business that you're building and that it continues to be meaningful to you is incredibly important. I think having an incredible mentor is really important. And when you think about mentoring relationships, think about how they're mutually beneficial is something that I wish I probably had learned earlier and found to be just a valuable tidbit on the road on the journey.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Leadership can happen from the back of the room, and it doesn't always happen to happen from the front of the room. So coaching the people, the heroes of our story who are fund managers and entrepreneurs is something that I'm really excited about. And it's not necessarily about illuminating capital, but about the entire movement that we're a part of achieving.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, one of my dad's sayings is that life is about peace of mind and options. And I think there's something really powerful about that, particularly at this moment in history as we're looking at a society at so many divisive challenges and divisions increasing in terms of wealth. And when we think about how precious it is to have the peace of mind to be able to exist as who we are in society and feel comfortable with that, and we think about the options to be able to live a prosperous life, those are two different things that are constant reminders of the work that we have to do as a society.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think our research study reveals it. If people want to be commercial and they tell themselves that story, that they are, and they systematically look past people just because they're black or Latino or women, I think that that's a real pet peeve. I mean, I'm upset not only because that they violate their own standard of duty and legal requirements by law. but also that there isn't always a learning mindset to be curious about what the answer might be that they're in some ways fixed and investors that don't learn is something that I don't like investing in or have deep conviction about because I think the world is consistently moving and we have to be tireless learners in order to do what we do really”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“I meditate 30 minutes a day, and that helps clear the clouds and the waves of particularly over the last couple of months. I've been incredibly tuned in to the idea that so many people in the country right now, and be it themselves or their families or having challenges around behavioral and mental health challenges. So that's acts as an everyday way to counteract an incredibly difficult time in the country and the world. So building in a place to process that and to move that through is part of my meditation practice.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Fishing. I love fishing. I'm usually up in Reading in California. On the sac or lower Sacramento River this time of year as a salmon are coming in from the ocean, the Trinity River, another beautiful river out in Trukey on the rivers out there more recently I was just out on a boat in the bay with a number of people from communities all across the Bay Area, but not too many because we still have our COVID restrictions and we were chasing down Lincod and Atlantic Codd. I'm just enthralled by the idea that so few fish can exist in the vast ocean. And of course, like investing, a lot of it is about finding the fish within fishing. You can spend 90% of your time fishing looking for the fish just like investing. You spend a lot of time looking for great entrepreneurs and great fund managers.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“They can reach out to me through our website, which is www.olubencapital.com. That's really the best way. Or reach out to me on LinkedIn.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“As we build our business and resilience in our supply chain and as we look at the ways in which we engage people around the issues of criminal justice, the people around the issues of lower pay of women of color, women in general, and raise awareness among our customer set. And then there are franchisees that operate in more than 400 communities around the world that are really listening and sort of taking on these different challenges. So it's an amazing company. We have a lot of work to do externally and internally to live up to the message that we've set and continue to be on our journey of pushing the forefront of what some would call corporate social responsibility. But we're thinking of it as an integrated business model that builds fierce loyalty among a set of people and takes”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And a set of fans that are quite loyal to that company around the world and how to support incredible activists and communities around the world to enable them to push forward the positive impact in our world. And those are in ways that we call, as Ben and Jerry's community, a link prosperity. So we think about”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, for eight years, I've served on the board of Ben and Jerry's, which about 2,000 was sold to Unilever. And in the sale, there were 92 legally binding provisions in the sales agreement, including one that created a board of directors in perpetuity to govern the social economic and quality missions of the company. We do test the ice cream at every board meeting before it goes out the door to a few extra pounds over those eight years as a result of that important process. We look carefully with the management team at every ingredient. My job, along with other board members, is the chair of the audit committee is to measure the social impact in 35 countries around the world in which we do business and to really think about the power of a company.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Within the field relative to the size of the market that could be addressed if the research was done. By definition, bias is unseen. So as we begin to reveal it, it becomes more seen, but it's a very hard thing for the brain to get its head around, which is why it takes a longer period of time to begin to create change and help people see things that are unseen.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is not being met, and there needs to be a big investment and innovation and getting these tools right. So I think more so than me sharing a tip or two, the integrated process of reducing bias and the commitment to multiple years, ultimately the question is, what's it worth to do that work? And what's the magnitude of investment that we should see to solve a $35 trillion problem? And it's much more than it's currently going in to the system. The fact that our investors are some of the first in the world to fund and conduct and pioneer research at the intersection of behavioral science and the overlooking due to implicit bias around race is, I think there's a very good reasons why that should have been done before. But I was shocked to find that there wasn't more research.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the interesting things about this work is that awareness is really important and it may seem obvious from the thinking fast and slow work from Kahneman that he's basically saying figure out the times when you need to slow down and shift from your system one automatic brain processing to your analytical system two brain processing where you can catch some of the likely stories that system one is telling. And what I like to think about is illumining capital and our managers and our investors are holding a mirror to the financial system. And that mirror is asking folks to be accountable to the optimization and fiduciary duty that they've signed up for and realize that without bias reduction,”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Back to somebody that's interviewing for a board position. So those are things that we have to be cognizant, aware of situationally that our brain shortcuts to make us think we're doing something positive to help the world and actually we're reinforcing a system that underestimates people and doesn't prepare them first at success. That's just one nugget within an entire 40 module journey of a training.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oftentimes, is that in their organization will during performance review go easier or not, they're like, oh, this person's really experienced a lot of pain in their life. They're constantly overlooked and underestimated. And now I don't need to pile on by giving a lot of critical feedback in a review. Well, the opposite is true based on research that those that don't get the feedback that they need in order to punch through the next promotion or place in their career will ultimately not be as successful as those that do. That's just a common misunderstanding. It can be true in an entrepreneurial investment process. It can be true in a hiring promotion process. And it can also be true in sharing feedback.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll give this one for those that are excited about becoming allies and have been allies to women and people of color within their organizations. One of the common mistakes that people make in mentoring women and people of color.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have defined the different situations, build the interventions for those situations, and help them to train over the 10-year period to become better investors. And it might not be as important to spend a good chunk of time year-over-year studying and getting better at this. But because there's a $35 trillion opportunity on the other side of getting this stuff right, we believe that it is like those we've partnered with, an essential process to, one, make our world a better place, but two, to certainly compete out these returns that are hidden behind literally the race of people and the gender of people within the economic system.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, many of the challenges that we're working on or cemented over 400 years. So I kind of think 10 years is a short time frame for innovation given how difficult the systematic embedded process is in wiring in our brains are. Kahneman's research inside of behavioral economics cites that people in their own fields of speciality will be subject to biases by the changing of just very small framings of questions and processes. So in this training and process, I think in some martial arts practices like achieving a black belt, you don't know exactly when you're going to be there. But for those of my friends that are martial artists, usually what happens is when the white belt and early age Six year olds come marching in.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Optimization in modern portfolio theory and investment analysis are appalled to hear that too because why would we sign up for a fiduciary duty when we'd be violating systematically without learning some of these important elements of reducing the biases that we have within our selection process and our ability to achieve the highest returns for our investors So it feels like a perfect storm of sorts of opportunities for those that can figure this out”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And many of the most talented people in the world. But I think our Stanford paper helps to buttress the idea that that's likely true, that a black entrepreneur that's high performing, that's right in front of someone's face, that's allocating assets would artificially discount them only because they're black, right? So that's part of the reason why we focus on fund leaders of color. And that's part of the reason why we help our white-led funds understand that that's something that we don't indict them for, but we need to get fixed in order to get and select the best investments in the world. And there is, that's the financial analysis, but I don't want to leave the human analysis out in the cold because it is messed up to outperform and get overlooked only because of your race. It damages the humanity of the person selecting the fund and that of the person that's being overlooked. Those of us that love.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And also, when we look within the complexity of different populations of people of color as it maps to the talent that we'd expect to see within the asset management business, there's a big opportunity just like there would be in many other areas that are sort of under investigated, misunderstood. I remember when Andy Reycliff, my venture capital professor at Stanford Business School, said there are two conditions that need to exist for a major win in venture capital. The first is that the entrepreneur is non-consensus. In other words, if you went around to most of the people in the world, they'd say, well, I'm not sure if that's going to work. And the second is that they're right. So when we look at that framework, I could be wrong that there's not a massive opportunity.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“If we look at the amount of species of birds in the sky, we see a lot of diversity. When we look at a garden and we look at the biodiversity, we see a resilient ecosystem, a prosperous ecosystem has a lot of biodiversity. In Yellowstone recently reintroduced wolves and suddenly all the flowers came back and things that were out of balance for many years because the rabbit population overgrew resulted in a rebalancing of the ecosystem. And part of what I see is that the question really is what makes the current system optimal that should be answered rather than what makes Darren's philosophy or investment analysis on a manager of color. And I'm careful to not name them minority fund managers mostly because they're the majority of what we would expect in the world by population.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of the challenges with that is that white men control 98.7% of the asset management business. So it sort of doesn't create the systematic change that's necessary, but by building a cohort of fund managers that look like the optimal portfolio of the world, we would argue that that is to achieve the highest returns that would include aspects of all the different groups that we've mentioned so that they can work on reducing bias together and educating our investors that manage over a trillion dollars in capital on how to compete with that information. That's our model because what we're after is reducing the bias that Daniel Kahneman and others fail or have proven prevents optimal returns.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Too, when we look at the research, what we see is that it happens to be mostly white men currently in the asset management business that have power and control, which is one of the reasons why at a Lumen Capital, our investments look like the optimal portfolio of the world. It includes women and people of color within our portfolio structure, which to me and us at an Lumen Capital means black women in Afro-Latina women and other women of color led organization and funds, but also includes white male-led funds because we realize that reducing the bias that all of us has is the challenge that we're setting out to solve for, such that we can achieve higher returns. And if you think about it from a systems basis, if you develop a model that is only investing in women and people of color,”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's an interesting question. When I say women, and I'm familiar with the way the world views it, I mean Afro-Latino women, black women-led funds, of which we've invested in both black and Afro-Latina-led funds that are female-led. So I think if at the macro level, what we're seeing is that the likelihood of half of that $69 trillion rather than 1% of it should be the normalized number, then we've got a long way to go in looking at women of color, for example, as investment areas of focus. But what we also realize is that implicit bias affects all people, not just white men, not just white women, but black women and black men.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“When you go from the macro and then moving down towards the micro, one of the people that introduced Cestral Wittenberg at Kellogg, they focus more on racial difference because, and one of the reasons he says is when you start talking about women, it ends up only being white women. And so I'm curious as these cross sect and you go through your process, let's say you have a big pool, does it matter to you if it's a block?”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“That I've been historically overlooked to no fault of their own because of the biases in our investment processes, then that kind of unlocks a tremendous amount.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“In the world, the rebuilding of optimal financial decision making process creating returns for investors and positive impacts in the world. I guess it's part of the beauty of having a mentor like Wayne. Wayne is a systems engineer and created Calvert at a time where no one believed in impact investing. And even though it could be and grew to a $15 billion footprint over time, I think there was not deep interest until the asset class began to perform and people found that they'd vote with their values and their investments. And if they had an opportunity to do the same without trading off returns that they would take that decision forward. And my thesis is if they can invest in people that are likely to be the best people in the world to run funds and companies.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because impact investing was also, unfortunately, has some of the biases of the broader financial system that lead to lower percentages of women and people of color being invested in. I see that as one of the tremendous opportunities and potentially largest drags on the ability of impact investing to kind of prove out itself as a market-driven approach. So it's one of the great insights, I think, from our work in the work of many others within the field around looking at the latent value in the economy caused by the diminishing of someone's humanity, which is what happens when you outperform and get consistently overlooked by asset allocators for no reason other than race provides on the flip side a tremendous impact.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Making a choice between doing good and making a return in the world, it turns out that the talent is skewing towards wanting to participate in this sector and build solutions to the problems that they're seeing. And of course, the problems come with massive markets. So the uncompromising nature of the most talented leaders in the world to continue to build at the forefront of creating impact and returns. I think that's been some of the reason why some of the largest private equity funds in the world are launching almost on a daily basis at fields impact funds because they're finding that if they don't, they'll lose out on some of the best talent in the world that is uncompromising in their focus on achieving outsides returns. Now, within that analysis,”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Deployed within fund leaders that look like so much of the population of the world and the United States. So if we take that something artificially but real is pushing back that number to keep it where it is, what we're doing in our process is fighting against that current that leaves a ton of money on the table as it's reviewing high performing women and people of color-led funds. So as we go on that journey, stating it publicly is really incredibly important and being relentless in building networks that lead to identifying the best fund managers, which is something that we put a lot of resources into. And also after being at Calvert for eight years and looking at an incredibly talented group of people that are not”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the basic macro thesis, and I can get to the micro conversation, is that if 1.3% of 69 trillion dollars is invested in black and women-owned firms and led firms, then suddenly there's a massive opportunity. One way that we think about capturing that opportunity within our process is when we state publicly that we're open and seeking black-led, women-led, Latinx-led, indigenous-led, private equity venture capital, and growth-led funds. Because if we don't say that affirmatively, then people will think that we're like everyone else that got the result that we have currently, which is so little money relative to what we'd expect by random chance.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“You walk through the let's call it the beginning of the investment process where you're looking for managers and you have this research in your hands I'm curious how you disaggregate let's just call it impact investing if the thought of impact investing means they're investing in in such a way to do good black owned and women owned which may have different streams and cross-sect but you may not have all three at the same time”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Different time periods have fingerprints on the current imbalance in the asset management business today. So when we think about the burning down, the 100th anniversary of the building down of Black Wall Street in Tulsa, that was something that comes up a lot in civil rights history, but it often doesn't come up in economic history. We look at the powerful work of Robert Schiller as he won the Nobel Prize in Narrative Economics. When we think about these narratives that led to the destruction of value in the housing market that I talked about and the systematic extraction of the value of people in their biggest purchase in their lives because they're black or Latino being overcharged in that process, then we begin to see how the intervention points to change these systems.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“First pillar is evidence based research in collaboration with Stanford. The second is investing on the thesis that we have as a fund of funds, investing in the leading impact managers in the world and working with them to reduce their biases so they can select the best companies, hire the best people, and also select the best board members for the boards they own and control. The third pillar is an impact experience. So what we do is we bring together our investors to have deep dives with our fund managers in tying together some of the historical pieces of why the asset management business is so imbalanced in the first place. For example, when we look at the through line between slavery, the periods of racial terror in our country lynching mass incarceration, all of those”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And we help our investors kind of see the humanity and overlook value of fund managers within their entire portfolios and strategies. Because indeed, although this is pronounced within the private equity venture capital and growth investing fields, we believe it has implications within many different fields of investing.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a whole world of people out there that are outperforming and consistently getting dinged for no other reason than a race. And if we can go out and find those people that are managers, which is we're a fund of fund, so that's what we do. And what we also hold is true is that many fund managers that are looking for companies likely also make that same discounting within the process of their selection, which helps us understand why black-led companies are so underrepresented, even despite performance. So we set out to invest in the leading impact fund managers to work with them to reduce their implicit biases, to unlock their vision and ability to see over the 10-year period of our deployment of our curriculum so that they can select the best companies in the world.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Every situation that an asset allocator looked at, a high performing black-led fund and a high performing white lead fund, when they looked at these two cases, We rotated only the race of the leader of the fun, and the asset allocators It was as if they made up stories when they saw the race of the leader of the fun and artificially discounted their ability to execute on strategy. Artificially discounted their ability to raise capital and made up these collections of different stories that led and would likely lead to the undercapitalization based on the exact same track record of performance and all other credentials of the managing director of the funds. So what that means for us as a firm at a looming capital is that”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“We executed and wrote a pioneering paper between two fields that hadn't really ever been combined. So when we looked at Daniel Kahneman's research and thinking fast and slow, the behavioral economic frameworks that showed when you reduce bias, you can increase returns over 1,000 company studies with McKinsey. What we didn't see within that work was the application to how investors overlook women and people of color. We knew that if we could demonstrate that and if we could figure out if there were economics left on the table, then we would have a powerful thesis to begin a firm. And that's what happened. So we secretly tested 180 asset allocators managing over a trillion dollars in capital and almost”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I guess it was in reflection on that body of work with some support and coaching from Calvert, including Wayne Silby. To launch a fund that was entirely focused on impact investing in the strategic inclusion of women and people of color as a strategy for outperformance, which is how Illumen Capital was founded. And we have three different components to the firm. One is rigorous and evidence-based research. And we recently published a paper in the proceedings of the National Academy of Sciences with two Stanford professors who have PhDs respectively, one Dr. Jennifer Eberhardt, and implicit bias social psychology from Harvard and the other Dr. Ashby Monk, who has a PhD in Sovereign Wealth Fund and pension fund, portfolio construction, and risk-taking and outperformance. And so when we combine these two incredible professors with our team at Illumen Capital,”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“And here was a field that over 30 years had developed. And if you ask people within the field of impact investing why they were doing what they were doing, they were doing it to solve a lot of investing to achieve market rate returns, the ones that I'm sort of closest to. And of course, it was shareholder dollars invested into this. So I thought about that a lot as we deployed investments, but also to make the difference in the big problems of the world. The irony was that as we sought to do that, many of the metrics that the field was created around did not include advancing women in people of color as a strategy for outperformance with an impact investing. And part of what we found as our team deployed the capital at Calvert is we found super high outperformers that were both women and people of color-led fun.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, Calvert was a powerful place to be in that the portfolio that we built was over 26 years and the founder of Calvert, Wayne Silby, was a wonderful mentor. I think that more than it being about Calvert, part of what I found”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“The private equity part was something really, really special that we could enable our shareholders at Calvert to participate in being a part of the most transformative impact companies in the world. And that was a powerful way to look at systemic change by redefining and really finding entrepreneurs and fund managers that redefine finance in a way that was inclusive of impact in the world. And we would do that by investing in themes that were similar to and connected to environmental transformation, financial inclusion. We'd look deeply at ed tech. And then finally, we would look at health tech as a transformative field. Of course, food systems and agritech is another field in which we spent a lot of time. And when we found these entrepreneurs, we found that they could compete.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Equity to transform systems like venture capital and growth funds and private markets led me to go to Calvert funds where I ran a portfolio of 44 funds as a consultant of the board of directors there and try my hand at this craft that I'd learned from a wonderful person that I worked with in Jim Coulter in a very different way. It's Calvert's mission was to tirelessly look for the best and most transformative companies in the world and funds in the world that were dedicated to impact investing. So that was the whole focus of it. It had done great in the money market field in terms of growing from zero to $15 billion and building some of the highest yield money market funds in history over that run from the early 80s to where it currently sits.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“Challenged on the basis that they could have a greater influence if they had embodied in them the massive opportunity that's present in the growing populations of people of color in the United States, not only as a market, but also as contributors at the leadership level. And in fact, they see it as quite strange that asset management is 1.3% of $69 trillion in capital that are managed by one of the largest demographics of folks on the planet, being women and people of color. And yet for 30 years of attempts and tries to develop entrepreneurial talent and the talent of fund managers of color, the system has effectively failed to reach where we think optimality lies.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“TPG and the difference that made in the lives of hundreds of thousands of people around the world. And part of what I reflected on in having an opportunity to see, I think, one of the great strategists and leaders within private equity and indeed partner with them to rebuild an American city with the people of that city is that private equity, venture capital, and growth, they can be incredible tools to influence the lives of people and create great organizations that redefine our experience and humanity. And there's a sense that the companies that are changing at more and more rapid rates that are in the Fortune 100 and Fortune 500.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source
“The best entrepreneurs in New Orleans to build the culture of entrepreneurship, revitalize really the culture of entrepreneurship because it's always been there in New Orleans, one of the cities that contributed jazz and lots of different spices and foods. And so the innovation has always been present there, but really to catalyze and take that to the next level by identifying and funding leading entrepreneurs. So that was to your question, how did I begin to think about the micro scale to the macro scale of venture capital? I do still see incredible connections between them. But Jim would present and share the TPG journey that he had in his early entrepreneurial days and building the portfolio north of $90 billion in revenue from the various different portfolio holdings within.”
2020-12-14 · Capital Allocators · Diversity Equity & Inclusion 5: Daryn Dodson – Training and Action at Illumen Capital (Capital Allocators, EP.168) · IDENTIFIED FROM THE TRANSCRIPT · source