Trident, an institutional asset manager that utilizes proprietary technology and a systematic approach to invest in high potential small businesses, today released their first annual “Doing Well While Doing Good” report. The report details the firm’s “profit with purpose” investment philosophy while providing an inside look at diversity metrics that demonstrates more broadly that a commitment to DEI can be an alpha generator within the private equity industry.

Trident seeks to deliver outsized returns by focusing on an asset class that represents over $8 trillion of asset value, but is relatively underinvested by institutional capital – only 0.52% of private equity AUM targets small businesses. This established framework for a tangible measurement of social value creation includes the adoption of their Doing Well While Doing Good policy, building a diverse team, calculating and monitoring their commitment to reducing the racial wealth gap, and mobilizing capital towards small businesses that meet federal Public Welfare Investment (PWI) eligibility.

Trident provides ESG metrics for several portfolio companies, including:

• Mountain West Brands, a Utah-based restaurant franchise, where 97% of the employees are in the low- to moderate-income (LMI) census tracts.
• Lumina, a network of optometry practices in Arizona, where 51% of Lumina’s employees are in the LMI income brackets and 74% of their employees are women.
• Cornbread, a fast-casual farm-to-table restaurant franchise based in New Jersey, where 66% of locations are in LMI census tracts, 90% of employees are in the LMI income brackets, and 97% of employees are people of color.

Eric Taylor, Founder, CEO and CIO of Trident, said, “Trident’s investment philosophy has always been anchored by the belief that portfolio companies, investors and the communities we engage with all stand to benefit when we align profit and purpose without compromising either. Our Doing Well While Doing Good report lays the foundation for how our customized approach directly contributes to creating equitable access to the American Dream, and how our investors and stakeholders can rest assured of our fiduciary responsibility to seek to maximize their returns while we steward our stakeholder responsibilities to advance measures to closing the racial wealth gap through progressive DEI practices.”

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The Doing Well While Doing Good report highlights how Trident advocates for diversity end-to-end with a belief that change starts from within: 60% of its team are people of color (POC) and 40% are women, the Investment Committee is led by two Black professionals, the Investment Team is woman-led, and 67% of portfolio companies have at least one POC and one woman in leadership positions. Additionally, Trident has pledged that at least 13% of value created in its investments will accrue to the Black American community, proportionate to population mix. “I am sure we will index above that. All of this is intentional and underscores the authenticity of our commitment,” said Aron Betru, Chief Strategic Officer & COO of Trident.

Trident has also secured strategic partners and allies to further execute their Doing Well While Doing Good mission. These partners and allies in the mission include the National Association of Investment Companies, McPherson Berry & Associates, Milken Institute’s DEI in Asset Management program, Moody’s, R3 Score, the National Association of Black Accountants, National Association of Securities Professionals, CapEQ, the National Banker’s Association, RiskVersity, and Technology Concepts Group International, among others.

Source: Trident