Equity, Diversity & Inclusion
“Using diverse investment firms is not only about creating growth and opportunity in our communities, but it’s integral to increasing our investment returns.”
Michael Frerichs
Illinois State Treasurer
The Illinois Treasurer believes that our government should mirror the diversity in our state. And beyond that, diversity is good for business. Research demonstrates that diverse-owned companies are often well-positioned to identify market inefficiencies and, as a result, are primed to outperform their peers. That’s why we’re focused on providing more opportunities to qualified Minority, Women, Veteran, and Disabled-owned (MWVD) financial firms and to firms with a record of equity, diversity, and inclusion.
Diversity in Broker/Dealers
- Preference for MWVD Broker/Dealers – Policies and procedures establish uniform operating processes across investment divisions for the allowance of preference to qualified MWVD-owned broker/dealers.
- Assets Brokered by MWVD Firms Increased from $603 million to $42 billion – Total assets brokered by MWVD firms increased from $603 million in FY 2014 to $42 billion in FY 2025. That represents a 69-fold increase. Visit The Vault for more information.
- 30% for MWVD Broker/Dealers – All managers of separately managed investment portfolios under the Illinois Treasurer are required to direct at least 30% of total commission dollars to MWVD broker/dealers, preferably Illinois-based, to increase opportunities to qualified firms.
- Assets Brokered by MWVD Firms Increased from 6% to 70% – There has been impressive growth in the utilization rate of MWVD broker/dealers, with consistent gains each year. In FY 2015, only 6% of assets were brokered by MWVD firms. By FY 2025, 70% of assets were brokered with MWVD firms.
- Broker/Dealer firms include but are not limited to: Cabrera Capital Markets, Loop Capital Markets, Great Pacific Securities, Drexel Hamilton, MFR Securities, and Mischler Financial Group, amongst others.
Economic Impact on MWVD Broker/Dealers – As a result of increased utilization by the Illinois Treasurer, MWVD broker/dealers are estimated to have attained $13.8 million for services rendered over the course of FY 2016 to FY 2025.
Diversity in Asset Management
- Preference for MWVD Asset Managers – Policies and procedures establish uniform operating processes across investment divisions to allow for preference to qualified MWVD-owned asset managers.
- Implementation of the Garcia Rule – The Illinois Treasurer maintains a requirement that helps ensure purposeful recruitment of diverse candidates and requires the Illinois Treasurer to interview at least one diverse candidate before the final selection of a candidate for any investment manager search in any program overseen by the Treasurer.
- Integrating Equity, Diversity, and Inclusion into the Investment Selection Process – The Illinois Treasurer believes that investment managers who neglect equity, diversity, and inclusion cannot fully understand the factors shaping their businesses, the economic environment, and the world at large. A strong commitment to equity, diversity, and inclusion drives broader, more robust innovation, enables overcoming challenges, and attracts and retains top talent. The Illinois Treasurer believes a diverse team is better equipped to understand and respond to challenges related to equity, diversity, and inclusion, which may be material and could affect long-term investment performance.
- Actions taken pertaining to equity, diversity, and inclusion have been, and will continue to be, a differentiator of a firm’s strategy and will be considered a supplement to the Treasurer’s qualitative and quantitative evaluation process across both public and private markets.
- Actions taken pertaining to equity, diversity, and inclusion have been, and will continue to be, a differentiator of a firm’s strategy and will be considered a supplement to the Treasurer’s qualitative and quantitative evaluation process across both public and private markets.
- MWVD Broker/Dealer Utilization – All managers of separately managed investment portfolios under the Illinois Treasurer are required to direct a specific threshold of total commission dollars to MWVD broker/dealers, preferably Illinois-based, to increase opportunities to qualified firms. A breakdown of requirements by asset class can be seen below:
| Asset Class | Minimum Goal as a Percentage |
| Domestic Equities | 30% |
| International Developed Equities | 20% |
| Emerging Market Equities | 0-5% |
| Domestic Investment Grade Fixed Income | 25% |
| International Developed and Emerging Market Fixed Income | 0-5% |
- Assets Managed by MWVD Firms Increased from $18.1 million to $6.7 billion – The Illinois Treasurer increased assets managed/distributed by MWVD firms from $18.1 million in June 2016 to $6.7 billion as of June 2025. That’s a 369-fold increase. This includes MWVD-owned or operated asset management firms and mutual fund sub-advisory relationships. Visit The Vault for more information.
- Asset Management firms include but are not limited to: Ariel Investments, Garcia Hamilton & Associates, Ramirez Asset Management, Sit Investments, Brightwood Capital Advisors, Palladium Equity, and Valor Equity, amongst others.
Economic Impact on MWVD Asset Managers – As a result of increased utilization by the Illinois Treasurer, MWVD asset managers earned over $64.1 million total from FY 2016 to FY 2025.
- Illinois Growth and Innovation Fund (ILGIF) – The Illinois Growth and Innovation Fund is an impact investment fund that aims to invest approximately $1.5 billion to attract, assist, and retain quality tech-enabled businesses in Illinois. As of June 30, 2025, $353 million in ILGIF funds has been committed to MWVD-operated firms.
- Investments from ILGIF fund managers have supported more than 462 diverse-owned portfolio companies to receive funding.
- Through ILGIF, the Illinois Treasurer actively seeds and anchors new minority-operated venture capital funds, advancing the investment objective of fostering a more diverse and inclusive manager pool and entrepreneurial community across Illinois.
- Venture capital firms include, but are not limited to: Moderne Ventures, Brightwood Capital, Agent Capital, Chingona Ventures, Palladium Equity Partners, Vamos Ventures, Builders VC, Impact Engine, Vistria Group, amongst others.
- Investment Consultant Scorecard – Given the centrality of investment consultants in identifying and selecting external investment managers for the Illinois Treasurer, it is important to have a system that assesses investment consultants’ capabilities and attributes to help the Illinois Treasurer achieve its goal of increasing the utilization of diverse-owned investment firms. The office’s Investment Consultant Scorecard is a customized evaluation process that seeks to fulfill this objective. Please view the Scorecard Guide for more information on the purpose, structure, and rating methodology.
Advancing Equity, Diversity, and Inclusion 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 in the Midwest
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, engaging them to better understand their policies and practices and recommending steps to strengthen board diversity 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 percent 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 over $8 trillion in assets under management. The group believes strong, well-composed boards are essential to corporate performance and U.S. competitiveness. Invest Ahead gives members a forum to share investor-led 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
FY 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
View our proxy voting dashboard.
Investing in Diverse Entrepreneurs
CAST US: A Strategic Investment in Chicago
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 (ILGIF) 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. Learn more online at Cleveland Avenue.
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 marginalized 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 (CRA) 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 CRA standards.
Promoting Public Awareness
The Illinois Treasurer also maintains a Community Reinvestment webpage to educate consumers and financial institutions about CRA standards. This work supports a stronger banking system that grows local communities and strengthens the Illinois economy.
Officewide Initiatives
- 360-Degree Review of Financial Services Partners – Since 2017, all financial and investment firms seeking to do business with the Illinois Treasurer must disclose how they promote equity, diversity, and inclusion. This includes a 360-degree evaluation, conducted annually through the Office’s “Equity, Diversity, & Inclusion Assessment,” of diversity among its board or owners, executive leadership, workforce, supplier network, and community activities. This evaluation leverages data and information already disclosed to the Equal Employment Opportunity Commission, which divulges the various types of roles at a company (e.g., executives, managers, professionals, technicians, sales, clerical, labor, etc.) by race, ethnicity, and gender.
- MWVD Business Liaison – Since 2017, staff have been specifically dedicated, under the Division of Stewardship & Sustainable Investment, to assist MWVD investment firms in doing business with the Illinois Treasurer, helping firms understand transaction needs, certification processes, and best position their firms for business opportunities. Staff can be reached at MWVD@illinoistreasurer.gov.
- Financial Services Pipeline (FSP) – Since 2016, the Illinois Treasurer has been an active member of the Financial Services Pipeline Initiative, which seeks to increase the representation of Latinos and African Americans at all levels within the Chicago area financial services industry by focusing on the talent pipeline, recruitment/hiring, and development/retention. In an effort to increase the representation of African Americans and Latinos within the financial services sector, the 7th Annual 2020 FSP Intern Career Conference brought together more than 250 interns and students from 14 member firms and 8 non-profit partners across Illinois.
- Advancing Equity in Banking Commission (AEBC) – The Illinois Treasurer and Chicago City Treasurer Melissa Conyears-Ervin convened a number of financial institution CEOs across the State of Illinois to discuss and subsequently join the AEB Commission to design and implement a number of solutions to address the systemic and structural racism within the banking industry. The first convening occurred on June 19, 2020, with CEOs and senior executives from Chicago’s leading financial institutions.
- ILPA Diversity in Action Signatory – As a signatory to the Institutional Limited Partners Association’s Diversity in Action Initiative, the Illinois Treasurer furthers our goal of fostering a more diverse and inclusive private equity industry. The objective of the Diversity in Action Initiative is to motivate venture capital and private equity firms to adopt specific actions and best practices that advance equity, diversity, and inclusion over the long-term (e.g., establish organizational goals for the recruitment, hiring, and retention of women and persons of color, assign senior-level accountability for EDI responsibilities, etc.). Learn more online with Driving Inclusion in Alternatives Initiative.
Building Equity
- Treasurer Frerichs has worked to make college savings more accessible and affordable for families across Illinois. As Trustee and Administrator of the State’s highly rated 529 college savings plans—Bright Start 529 and Bright Directions—he has focused on reaching families from all backgrounds. Both plans are available to individuals with Individual Tax Identification Numbers (ITINs), expanding access to more Illinois residents. His office also updated marketing materials to better reflect the diversity of Illinois families and partnered with a multicultural marketing firm to launch Bright Start 529 in Spanish, including a Spanish-language website, campaign, and printed materials.
Investment Services Sought
The Illinois Treasurer seeks a wide variety of financial services and products from MWVD firms, including, but not limited to:
| U.S. Treasuries | Supranational Bonds |
| U.S. Agencies | Commercial Paper |
| Foreign Bonds | Municipal Bonds |
| Corporate Bonds/Notes | Repurchase Agreements |
Investment Management Services
| Fixed Income | Cash & Cash Equivalents |
| Public Equities | Real Estate |
| Private Equity | Venture Capital |
| Securities Lending | Private Debt |
| Custody and Safekeeping | Depository Services |
| ACH Transactions | Lockbox Services |
| Cash and Check Processing | Credit and Debit Card Processing |
Other Investment Services
| Investment Consulting | Linked/Time Deposits |
| Bond Arbitrage | Third-Party Research |
| Treasury Consulting | – |
MWVD Preference
As set forth in Section 30 of the State Treasurer Act, 15 ILCS 505/30, it is an aspirational goal of the Illinois State Treasurer to use businesses owned by or under the control of qualified veterans of the armed forces of the United States, qualified service-disabled veterans, minority persons, women, or persons with a disability (“MWVD Persons”) for not less than 25% of the total dollar amount of funds under management, purchases of investment securities, and other contracts. Preference is accorded to qualified businesses that demonstrate or attest that (1) greater than 50% of the ownership interest of the firm is held by MWVD Persons, OR (2) greater than 75% of the firm’s senior managers are MWVD Persons.
As used herein, the following definitions apply: (i) “minority person” means a person who is any of the following: American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander; (ii) “woman” means a person who is of the female gender; (iii) “veteran” means a person who (1) has been a member of the armed forces of the United States or, while a citizen of the United States, was a member of the armed forces of allies of the United States in time of hostilities with a foreign country and (2) served under one or more of the following conditions: (a) served a total of at least six months, (b) served for the duration of hostilities regardless of the length of the engagement; (c) was discharged on the basis of hardship; or (d) was released from active duty because of a service connected disability and was discharged under honorable conditions; (iv) “person with a disability” means a person with a severe physical or mental disability that: (1) results from: amputation, arthritis, autism, blindness, burn injury, cancer, cerebral palsy, Crohn’s disease, cystic fibrosis, deafness, head injury, heart disease, hemiplegia, hemophilia, respiratory or pulmonary dysfunction, an intellectual disability, mental illness, multiple sclerosis, muscular dystrophy, musculoskeletal disorders, neurological disorders, including stroke and epilepsy, paraplegia, quadriplegia and other spinal cord conditions, sickle cell anemia, ulcerative colitis, specific learning disabilities, or end stage renal failure disease; and (2) substantially limits one or more of person’s major life activities. Another disability, or a combination of disabilities, may also be a disability if it is determined to cause a comparable degree of substantial functional limitations, similar to the foregoing list.
Procurement and Investment Opportunities
- Advocacy for Aspirational Goals for MWVD Businesses – Treasurer Frerichs spearheaded the passage of Senate Bill 2363, sponsored by Sen. James Clayborne and Rep. Will Davis, and signed into law on August 19, 2018. The law sets a goal for the Illinois Treasurer to use minority-, women-, veteran-, and disability-owned businesses in at least 25 percent of contracts and investment-related activities. It also permits procurement preferences for MWVD firms, requires review of Community Reinvestment Act (CRA) ratings, and mandates an annual report on MWVD utilization.
- Current Procedures – The Illinois Treasurer currently includes detailed questions regarding diverse ownership in its Requests for Proposals (“RFPs”). These questions help the Illinois Treasurer better understand which communities are competing successfully and which may be falling short. Below is an example of a statement regarding diversity that is included in the Illinois Treasurer’s current RFPs:
- “Respondent’s diversity score will be based on the answers the Respondent provides to the Diversity & Inclusion questions of this RFP. The Evaluation Team shall award a higher diversity score to Respondents who are female, minority, persons with disabilities, or veteran-owned or managed. Having a higher percentage of subcontractors that are female, minority, persons with disabilities, or veteran-owned or managed shall also result in higher scores.”
- “Respondent’s diversity score will be based on the answers the Respondent provides to the Diversity & Inclusion questions of this RFP. The Evaluation Team shall award a higher diversity score to Respondents who are female, minority, persons with disabilities, or veteran-owned or managed. Having a higher percentage of subcontractors that are female, minority, persons with disabilities, or veteran-owned or managed shall also result in higher scores.”
- Utilization Rates – The Illinois Treasurer has taken steps to improve data collection by enhancing internal communication among departments and external communication with contractors. Following this improved communication, there has been an increase in responses to requests for diversity data, and the accuracy of the existing active contracts has improved.
- This year, the Illinois Treasurer again sent a diversity assessment to all current contractors with active agreements, including vendors working under certain statewide master contracts.
- The assessment was sent to 117 contractors.
- The Illinois Treasurer obtained information on minority-, women-, veteran-, and disability-owned (MWVD) contractors for 85 contractors.
- Of the vendors that responded, confirming MWVD ownership or control, or whose MWVD registration was confirmed through the State’s Chief Procurement Officer for General Services, 19 vendors identified as MWVD businesses.
- During Fiscal Year 2025, the Illinois Treasurer paid $2,498,775 to MWVD vendors through contractual services and related appropriations.
- That amount represents more than 10% of the Illinois Treasurer’s total appropriated contract and purchase spending of $24,386,667.87 in Fiscal Year 2025.
- This total does not include $13,421,819.02 in program management fees earned by MWVD contractors in Fiscal Year 2025, because those payments were made directly through fees rather than appropriated funds.
MWVD firms interested in working with the Illinois Treasurer’s Office can explore both procurement and investment opportunities.
For non-investment opportunities—such as RFPs, RFIs, invitations to bid, and related solicitations—please visit our Procurement Opportunities page. You can also view our Focus on Inclusion Flyer for more information.
For investment opportunities, MWVD firms should email MWVD@illinoistreasurer.gov with an overview of their business capabilities. Firms should also complete and submit the following forms so the Illinois Treasurer’s Office can identify potential opportunities:
Please send completed forms to MWVD@illinoistreasurer.gov.
Minority-, Women-, Veteran-, and Disability-Owned
Investment Firms and Contractors
- FY 2025 Annual Report on MWVD Utilization
- FY 2024 Annual Report on MWVD Utilization
- FY 2023 Annual Report on MWVD Utilization
- FY 2022 Annual Report on MWVD Utilization
- FY 2021 Annual Report on MWVD Utilization
- FY 2020 Annual Report on MWVD Utilization
- FY 2019 Annual Report on MWVD Utilization
- Equity, Diversity, and Inclusion – A Track Record of Success (2015-2020)