The announcement comes amid a trend of successful fundraising by Black-led and founded funds, such as Slauson & Co.'s $100 million Fund II and Cherryrock Capital's $172 million Fund I. These funds vary in their missions, with some focusing on underrepresented communities, despite political pressures against diversity, equity, and inclusion initiatives. Zeal Capital Partners, founded in 2019, has invested in 40 companies to date, with Fund I closing at $62.1 million in 2021.
Key takeaways:
- Zeal Capital Partners closed its second fund at $82 million, with plans to invest in at least 25 early-stage companies, focusing on financial technology, healthcare, and the future of work.
- Limited partners in the fund include Citi Impact Fund, M&T Bank, Wells Fargo, and Spelman College, with 50% of the fund reserved for follow-on investments.
- Over 80% of limited partners from Zeal Fund I continued into Fund II, indicating strong confidence in Zeal's investment strategy despite a challenging funding environment.
- Black-led and founded funds, like Zeal, have been successful in raising significant funds recently, with examples including Slauson & Co., Illumen Capital, Symphonic Capital, and Cherryrock Capital.