Expanding Opportunity Through Investment
The Illinois State Treasurer’s Office uses several strategies to expand opportunity, strengthen corporate accountability, and increase access to capital for underrepresented communities.
Increasing Board Diversity
Midwest Investors Diversity Initiative
The Illinois Treasurer leads the Midwest Investors Diversity Initiative (MIDI), a 15-member coalition of regional institutional investors representing more than $1 trillion in assets under management. MIDI works with Midwest companies that have gaps in board diversity and encourages stronger policies and practices over time.
Results Since 2016
Since MIDI was formed in 2016, the coalition has engaged 97 companies on board diversity. Among companies that added new directors while engaged with MIDI, 54% of those new board members were women or people of color, representing 162 of 301 new directors.
Of those 162 diverse directors:
- 123 were women
- 83 were people of color
- 47 were women of color
Supporting Stronger Corporate Boards Nationwide
Invest Ahead
Since 2018, the Illinois Treasurer has participated in Invest Ahead, a national, nonpartisan network of more than 90 institutional investors representing more than $8 trillion in assets under management. The group focuses on the importance of strong, well-composed boards and gives members a forum to share strategies and collaborate on board diversity efforts.
National Impact
Invest Ahead members have engaged more than 500 companies that later appointed women to their boards.
Using Proxy Voting to Promote Accountability
Proxy Voting Priorities
The Illinois Treasurer uses proxy voting rights to support proposals that:
- increase board diversity
- require gender pay gap reporting
- include diversity as a performance measure in CEO compensation
Fiscal Year 2025 Proxy Voting Activity
During Fiscal Year 2025, the Illinois Treasurer:
- voted against 1,303 directors on nominating committees for failing to disclose the racial makeup of the board
- voted against 1,848 directors on nominating committees for lack of gender diversity
Investing in Diverse Entrepreneurs
CAST US
Since 2019, Treasurer Frerichs has partnered with Don Thompson, CEO and Founder of Cleveland Avenue, to support Black, Latinx, and women entrepreneurs. In 2020, the Treasurer made the largest investment to date from the Illinois Growth and Innovation Fund by committing $16 million to the Cleveland Avenue State Treasurer’s Urban Success Fund (CAST US).
What CAST US Supports
CAST US is a $70 million fund designed to connect diverse entrepreneurs in underinvested areas of Chicago with capital and business support resources. It is the first venture capital fund focused specifically on underserved communities and underinvested entrepreneurs on the South and West Sides of Chicago.
Broader ILGIF Impact
ILGIF has been a leader in advancing equity, diversity, and inclusion in venture capital. Approximately 40 percent of its committed capital has been invested in firms led by women and people of color.
Expanding Access to Capital
Invest in Illinois
Invest in Illinois is a group of programs offered by the Illinois Treasurer that includes:
These programs provide millions in impact investment deposits to lending institutions to support:
- consumer loans
- farm-related expenses
- business expansion
- economic and community development activities
Why It Matters
By making state investment capital available at a lower rate, Invest in Illinois encourages financial institutions to lend at lower cost to borrowers, including communities that may face limited loan access or higher interest rates.
Strengthening Community Reinvestment Standards
Reviewing CRA Performance
Since 2015, the Illinois Treasurer has reviewed a financial institution’s record of serving its community when deciding whether to do business with that institution. Banks with a Community Reinvestment Act rating below Satisfactory are not eligible to do business with the Office.
Taking Action on Poor Performance
In June 2015, the Illinois Treasurer suspended investments with two Illinois banks that failed to meet Community Reinvestment Act standards.
Promoting Public Awareness
The Illinois Treasurer also maintains a Community Reinvestment webpage to educate consumers and financial institutions about community reinvestment standards.