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Cadence Design Systems, Inc., announced that it is making a $50 million USD purpose-driven investment in an impact investment program managed by RBC Global Asset Management (RBC GAM) to address racial wealth inequities in affordable housing, homeownership and small business. In partnership with RBC GAM, Cadence will invest in an impact investment strategy that seeks to positively support underserved Black and Latinx individuals and communities nationally, including those in the San Francisco Bay Area, CA; Austin, TX; Columbia, MD; the New York Metropolitan Area; Boston and Burlington, MA; Research Triangle Park in Raleigh, NC; and Pittsburgh, PA—locations where Cadence has significant operations and a community presence. Additionally, a portion of Cadence’s investment will be focused internationally on projects aimed at supporting women and people of color as well as climate justice initiatives.
“Fostering diversity, equity and inclusion is at the core of who we are as a company, and collaborating with RBC GAM to advance racial equity and community development was a very easy choice,” said Dr. Anirudh Devgan, president and CEO of Cadence. “We are dedicated to making a difference and look forward to seeing the impact that our partnership will have on Black and Latinx communities across the United States as well as on the international initiatives focused on supporting women, people of color and climate justice.”
“Following Black History Month, we’re taking a proactive approach to address the racial income gaps and racial homeownership inequality that exist throughout the United States in commemoration of this important period of reflection,” said KT Moore, vice president, Corporate Marketing at Cadence. “At Cadence, we are committed to supporting diversity and revitalizing communities where we operate and are proud to call home.”
Cadence’s investment will be allocated in RBC GAM’s Access Capital Community Investing Strategy, which will invest in U.S. government-backed securities to support lending in historically underserved communities.
Access Capital has a quarter century of history of supporting investments in underserved communities and was founded in 1998 by Ron Homer, Chief Strategist of U.S. Impact Investing at RBC Global Asset Management, who is a pioneer of impact investing in the U.S. Mr. Homer, who held executive roles at several Black-owned banks before joining RBC GAM in 2008, has dedicated the entirety of his six-decade career to supporting community development and homeownership in Black communities through impact investing.
“We are excited to work with Cadence on this initiative aimed at reducing racial disparities in income and wealth within the United States,” said Mr. Homer. “Through Access Capital’s 25-year history of impact investing, doors have opened that facilitated more people of color to enjoy the benefits of the American dream of wealth, homeownership and income appreciation. On the heels of Black History Month, we must understand the importance of building racial equity across America.”