Expanding Opportunity Through Inclusive Investing
Advancing EDI in Investment Decisions
Illinois Treasurer Michael Frerichs believes our government should mirror the diversity of 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.
Officewide Initiatives
The Illinois State Treasurer’s Office uses several office-wide initiatives to promote equity, diversity, and inclusion across financial services and investment partnerships.
360-Degree Review of Financial Services Partners
Since 2017, financial and investment firms seeking to do business with the Illinois Treasurer have been asked to disclose how they promote equity, diversity, and inclusion.
Each year, the Office conducts a 360-degree review through its Equity, Diversity, and Inclusion Assessment. This review looks at diversity across:
- boards or ownership
- executive leadership
- workforce
- supplier networks
- community activities
The assessment also uses information already reported to the Equal Employment Opportunity Commission, including workforce roles by race, ethnicity, and gender.
MWVD Business Liaison
Since 2017, staff in the Division of Stewardship and Sustainable Investment have been dedicated to supporting Minority, Women, Veteran, and Disabled-owned investment firms.
This team works with firms to:
- explain business and transaction needs
- answer questions about certification
- identify ways firms can better prepare for opportunities with the Illinois Treasurer’s Office
Financial Services Pipeline
Since 2016, the Illinois Treasurer has been an active member of the Financial Services Pipeline Initiative. This initiative works to increase Latino and African American representation at all levels of the Chicago-area financial services industry.
The initiative focuses on:
- talent pipeline development
- recruitment and hiring
- employee development and retention
In 2020, the 7th Annual Financial Services Pipeline Intern Career Conference brought together more than 250 interns and students from 14 member firms and 8 nonprofit partners across Illinois.
Advancing Equity in Banking Commission
The Illinois Treasurer and Chicago City Treasurer Melissa Conyears-Ervin brought together financial institution CEOs from across Illinois to form the Advancing Equity in Banking Commission.
The commission was created to discuss and develop solutions to address systemic and structural racism in the banking industry. The first convening took place on June 19, 2020, with CEOs and senior executives from leading Chicago financial institutions.
ILPA Diversity in Action Signatory
The Illinois Treasurer is a signatory to the Institutional Limited Partners Association’s Diversity in Action Initiative.
Through this work, the Office supports efforts to build a more diverse and inclusive private equity industry. The initiative encourages venture capital and private equity firms to adopt long-term practices that advance equity, diversity, and inclusion.
Examples include:
- setting goals for recruiting, hiring, and retaining women and people of color
- assigning senior-level responsibility for equity, diversity, and inclusion work
Learn more through the Driving Inclusion in Alternatives Initiative.
Diversity in Asset Management
The Illinois State Treasurer’s Office uses several strategies to increase the use of Minority, Women, Veteran, and Disabled-owned financial firms in asset management and related investment work.
Preference for MWVD Asset Managers
The Treasurer’s Office has policies and procedures in place that allow qualified MWVD-owned asset managers to receive preference during investment selection processes across investment divisions.
Garcia Rule
The Illinois Treasurer follows a requirement designed to support intentional recruitment of diverse candidates. Before making a final selection in any investment manager search for a program overseen by the Treasurer, the Office must interview at least one diverse candidate.
Growth in Assets Managed by MWVD Firms
The Illinois Treasurer increased assets managed or distributed by MWVD firms from $18.1 million in June 2016 to $6.7 billion as of June 2025. This includes MWVD-owned or operated asset management firms and mutual fund sub-advisory relationships.
Examples of asset management firms include:
- Ariel Investments
- Garcia Hamilton & Associates
- Ramirez Asset Management
- Sit Investments
- Brightwood Capital Advisors
- Palladium Equity
- Valor Equity
More information is available through The Vault.
Investment Consultant Scorecard
Investment consultants play an important role in identifying and selecting external investment managers. Because of that, the Illinois Treasurer uses an Investment Consultant Scorecard to evaluate how well consultants support the goal of increasing the use of diverse-owned investment firms.
The scorecard is a customized evaluation process that measures consultant capabilities and performance in this area.
For more information, view the Scorecard Guide.
Considering Inclusive Practices in Investment Evaluations
The Illinois Treasurer believes investment managers who take equity, diversity, and inclusion seriously are better positioned to understand the people, markets, and economic factors that shape long-term performance.
A strong commitment to equity, diversity, and inclusion can:
- Support innovation
- Improve problem-solving
- Attract and retain talent
- Strengthen how firms respond to risk and opportunity
For that reason, the Treasurer considers a firm’s actions to advance equity, diversity, and inclusion as part of the qualitative and quantitative evaluation process for both public and private market investments.
MWVD Broker/Dealer Utilization
Managers of separately managed investment portfolios for the Illinois Treasurer are required to direct a set share of total commission dollars to MWVD broker/dealers, with preference for Illinois-based firms when possible.
This requirement is intended to increase opportunities for qualified broker/dealers. See below.
Requirements by Asset Class
| 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% |
Diversity in Broker/Dealers
The Illinois State Treasurer’s Office uses several strategies to increase opportunities for Minority, Women, Veteran, and Disabled-owned broker/dealers.
Preference for MWVD Broker/Dealers
The Treasurer’s Office has policies and procedures in place that allow qualified MWVD-owned broker/dealers to receive preference across investment divisions.
Growth in Assets Brokered by MWVD Firms
Total assets brokered by MWVD firms increased from $603 million in Fiscal Year 2014 to $42 billion in Fiscal Year 2025. This represents a 69-fold increase.
More information is available through The Vault.
Commission Requirement for Investment Managers
All managers of separately managed investment portfolios for the Illinois Treasurer are required to direct at least 30% of total commission dollars to MWVD broker/dealers, with preference for Illinois-based firms when possible.
This requirement is intended to expand opportunities for qualified firms.
Growth in Utilization
The use of MWVD broker/dealers has increased steadily over time. In Fiscal Year 2015, only 6% of assets were brokered by MWVD firms. By Fiscal Year 2025, that share had grown to 70%.
Examples of Broker/Dealer Firms
Examples of broker/dealer firms include:
- Cabrera Capital Markets
- Loop Capital Markets
- Great Pacific Securities
- Drexel Hamilton
- MFR Securities
- Mischler Financial Group
Economic Impact on MWVD Broker/Dealers
By Fiscal Year 2025, MWVD firms brokered 70% of assets.
From Fiscal Year 2016 through Fiscal Year 2025, increased utilization by the Illinois Treasurer is estimated to have generated $13.8 million in services for MWVD broker/dealers.
Assets managed by MWVD firms grew from $18.1 million to $6.7 billion.
From Fiscal Year 2016 through Fiscal Year 2025, MWVD asset managers earned an estimated $64.1 million from increased utilization by the Illinois Treasurer.
Improving Data Collection and Utilization Tracking
The Illinois Treasurer has worked to improve how diversity information is collected and tracked. This has included stronger communication across internal departments and better follow-up with contractors.
As a result:
- more contractors have responded to requests for diversity data
- the Office has more accurate information about active contracts
Fiscal Year 2025 Assessment Results
In Fiscal Year 2025, the Illinois Treasurer again sent a diversity assessment to all contractors with active agreements, including vendors working under certain statewide master contracts.
The assessment results showed:
- 117 contractors received the assessment
- 85 contractors provided MWVD information
- 19 vendors identified as MWVD businesses, either through direct confirmation or verified state registration
Fiscal Year 2025 MWVD Spending
During Fiscal Year 2025, the Illinois Treasurer paid $2,498,775 to MWVD vendors through contractual services and related appropriations.
That amount represented more than 10% of the Office’s total appropriated contract and purchase spending of $24,386,667.87 for the year.
This total does not include $13,421,819.02 in program management fees earned by MWVD contractors during 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:
MWVD Investment Firms and Contractors
Explore opportunities with the Illinois Treasurer’s Office
The Illinois State Treasurer’s Office is committed to promoting equity, diversity, and inclusion across financial services and investment partnerships.
For questions or inquiries, contact MWVD@illinoistreasurer.gov.