Investment Manager Seeking to Close Racial Wealth Gap

Black people in America achieved their personal freedom 158 years ago, but economic freedom has remained elusive. Jim Casselberry, a veteran portfolio manager, aims to address this issue by leveraging his four decades of investing experience to help bridge the wealth gap for people of color and the Indigenous population. In a recent interview, Casselberry expressed the need for capital to be in the hands of the right individuals and emphasized the importance of empowering them to utilize their talents and skills. Juneteenth, which is celebrated in the U.S., may commemorate the liberation of slaves, but it does not signify the end of racial inequality, particularly in terms of wealth distribution.

The wealth disparity between Black and white Americans is staggering. Despite constituting only 13% of the population, Black people hold a mere 4% of the wealth. In comparison, the richest 400 Americans possess the same amount of wealth as the entire Black populace. The racial gap stands at 6 to 1, an improvement from the 23 to 1 ratio in 1870 after emancipation, but still a significant divide. These statistics, gathered from the Minneapolis Federal Reserve in 2019, highlight the urgent need to bridge this gap.

To tackle this challenge, Jim Casselberry co-founded Known in 2021 alongside a diverse team comprising Black, Indigenous, Hispanic, and Asian-American co-founders. Known is a finance and asset management firm that collaborates with founders, family offices, and large asset owners who prioritize not only competitive returns but also long-term racial, social, and climate impact. The organization aims to provide support and resources to underrepresented populations, ensuring that they feel seen, acknowledged, and given the opportunity to succeed. Affirmative action and similar programs have played a role in driving progress, but Casselberry believes that broader reforms are necessary.

Casselberry acknowledges that reparations at a meaningful scale are highly unlikely given the current polarized and dysfunctional government. Philanthropic efforts have made some progress, but they are not sufficient to address the magnitude of the problem. Casselberry believes that the real solution lies in the capital markets, where the majority of funds under management are controlled by predominantly white firms. To effect change, organizations like Known play a crucial role.

Known was established to provide asset holders with an opportunity to invest for better outcomes. Its mission is to serve as a resource and enable access to capital for the Black, Indigenous, and People of Color (BIPOC) community, fostering growth and creating opportunities. By empowering BIPOC individuals and amplifying their voices, Known aims to make a meaningful impact on the racial wealth gap.