Trailblazers Discuss Business Diversity at Consortium 2013

By Melissa J. Anderson (New York City)

Yesterday, hundreds of institutional investors and small and diverse fund managers converged at Consortium 2013, for networking, career development, and discussion around the future of the industry.

Renae Griffin, Founder and Principal of RG & Associates and founder of the conference, opened the morning with what she called “a new Consortium tradition.” She encouraged attendees to stand up and shake hands and begin to network with one another. “That sets the stage for what’s going to be happening for the rest of the day,” she said.

The importance of building relationships was a common theme expressed by the morning’s speakers, a diverse set of leaders that included Jamal Simmons, Political Analyst and Principal at the Raben Group; Valerie Jarrett, Senior Advisor to President Obama; Marx Cazanave, Co-Founder and Former CEO of Progress Investment Management Company; Sonia Gardner, Managing Partner at Avenue Capital; Reverend Dr. Al Sharpton, Founder and President of the National Action Network; Robert F. Smith, Chairman and CEO of Vista Equity Partners; and Sue Toigo, Founder of the Robert Toigo Foundation.

All of the speakers are trailblazers, having entered business or politics at a time when these fields were barely open to women and minorities. Jarrett commented, “Diversity is good for business. CEOs who don’t get that, globally, they are not going to do well.”

She added, “As companies try to be competitive in the global marketplace, diversity is a strength.”

Strengthening Diversity

Jarrett, who spent much of her session discussing her journey into politics and her work with President Obama, shared a few thoughts on why companies need to develop more inclusive workforces.

She said, “Studies say that when you have women on boards, companies tend to be more profitable. That’s no surprise to me and probably no surprise to the other women in this room.”

Strengthening relationships amongst women and minority professionals will help send a message about the importance of diverse groups, she continued. “We have to build networks, such as the network you have right here in this room, and you have to make it a priority.”

“The leaders who are going to be the leaders of tomorrow recognize the importance of diversity,” Jarrett added.

Learning from Trailblazers

Toigo began her career in politics and then moved to business. She explained, “At some point it occurred to me that it wasn’t necessarily politics or legislation driving our community, but money was driving the politics.”

She and her husband, Robert Toigo, began leading groups of investors on trips all over they world, but were dismayed to realize that all of the participants were white men. “America is the most diverse country in the world. Why are only white people running money? How is anything going to change like that, if the people controlling the money come from one small subsection?” she asked.

That was the impetus behind the Toigo Foundation, the notion that changing society would require changing the face of business. For over twenty years, the Toigo Foundation has provided MBA fellowships and internships for women and minority professionals, and has since added lifelong mentoring, career development programs, and networking.

“We are a family and we are going into year 25,” she said. The group now has 1,000 alums and 125 current students. “This is a tight-knit group and it’s one-on-one, and it’s helping one person at a time do what they do best.”

Sonia Gardner is another woman working to change the face of business. With her brother, she has built a thriving company, Avenue Capital Management. “My family is an example of the American dream. We came here when I was four and none of us spoke English,” she recalled. “My parents sacrificed everything so we could have an education.”

In 1990, she and her brother founded a small brokerage firm, starting out with no capital. “We had a lot of nerve – or naivete,” she said. Nevertheless, the business did well, and a few years later the pair founded Avenue. Eventually, they had to make a choice – they couldn’t do both – and they chose to close down the brokerage firm and continue on with Avenue. The brokerage firm would have been easy to keep – it was doing well, but Avenue had more potential. “When you come to a crossroads in your life and you have to make a decision, do not follow the easy road,” she advised.

Today Avenue has gone global and has about $12 billion under management. But, Gardner says, it’s important to measure success not only in dollars but in reputation.

“Always, I believe the most important asset you have as a leader is your integrity,” she said. “Your definition of success has to contain an ethical code.”

“The most important element of success is your ability to hold onto your values and not give them up for a short term vision of success.”