Young bankers giving back via their own non- profits
NEW YORK — The founders of the Resolution Project don’t dwell on generosity or charity when they describe why their non- profit mentors and funds young leaders. They favour the language of finance.
“We get good yield,” said Andrew Harris, the group’s 31- year- old vicechairman, who advises private- equity firms at Forum Capital Partners in New York. “We think it’s very different and, to use a Wall Street term, very differentiated.”
Without deserting careers, a new wave of young bankers is starting nonprofits to help orphans, immigrants, veterans and students. They say they’re moved to mend the world using capitalism’s wisdom, not because of its shortcomings, preaching the power of dividends, due diligence, leverage and efficient allocation of resources. Some see themselves setting a new mould for post- crisis Wall Street philanthropy by not waiting to give away their money or leaving for full- time charity work.
“Among this generation — our generation — is a deep passion and interest in learning, earning and returning simultaneously,” said Andrew Klaber, 32, an analyst at hedge fund Paulson & Co. whose non- profit Even Ground provides education and care to African children affected by AIDS. “You just see an unmet need in your research, and research is what we do on Wall Street.”
Even Ground, which has given out more than $ 800,000 US, received early funding from Goldman Sachs Group Inc. Three founders of Ascend Educational Fund have worked at that bank.
“Our target audience is a very undercovered market,” said Adrienne Serrato, 27, an Ascend co- founder who now works for Houston- based investment firm WindAcre Partnership. Her group, which grants scholarships regardless of immigration status, awarded $ 32,000 in 2013, its first full year.
Another Even Ground co- founder, Julissa Arce, develops derivatives for Merrill Lynch clients at Bank of America Corp.
“The first time I felt like I made it wasn’t when I made director,” said Arce, 30, a University of Texas graduate. “I felt like I made it when I launched this fund.”
Lessons from capital markets aren’t the only inspirations. Others described being shaken by the 2008 financial crisis, even if they don’t see bankers as villains.
“There’s been a cultural humility that’s come out of the financial crisis,” said Tim Kleiman, 30, an analyst for New York- based asset manager Golub Capital. He’s working on a project to fund higher education in Africa that may aim for profit. “When you’re confronted with these really humbling events, where you see the meltdown of these systems and the sad human costs of that — that were not necessarily the result of anyone’s intention — for me it galvanized my thinking.”