Synchrony Announces Commitment to Ariel Alternatives’ Project Black

February 2, 2023  by HFBusiness Staff in Business Strategy, Industry   

Project Black is a strategic initiative of Ariel Alternatives, the private equity subsidiary of Ariel Investments, LLC.

"Building a more equitable, inclusive economy is a business imperative," said Brian Doubles, president and CEO, Synchrony.

"Our investment in Ariel and Project Black will help give Black, Hispanic and women entrepreneurs the support they need to grow long-term. Synchrony is committed to providing the resources and expertise to advance equity for diverse businesses and communities."

Project Black invests in middle-market companies that are not currently minority owned, as well as existing Black- and Hispanic-owned businesses, providing capital, resources and minority executive talent.

Under Project Black's ownership, these companies are expected to be transformed into certified minority business enterprises of scale to fuel Fortune 500 vendor and supply chain diversity.

Synchrony, along with other investors, plans to explore collaboration opportunities with portfolio company management teams to pursue growth strategies.

"Synchrony's partnership will help fuel widespread corporate vendor and supply chain diversity. With their support, we look forward to creating consequential middle-market businesses, changing the perception of what it means to be a minority-owned enterprise in the United States," said Leslie A. Brun, chairman and CEO of Ariel Alternatives.

"We are delighted and honored to have Synchrony as an investor in Project Black."

According to CEO Action for Racial Equity, in 2020, Fortune 500 companies directed an average of two percent ($125 billion) of their total spend to minority-owned businesses, yet many have pledged to dramatically increase their spend. 

With 95 percent of minority businesses having less than $5 million in revenue, few have the scale to tap into this $1 trillion opportunity.

These efforts build upon Synchrony's ongoing commitment to treat equity, diversity and inclusion as a strategic business imperative and drive long term progress. The company's holistic approach includes advancing financial opportunities and growth among diverse businesses and communities.

-  Synchrony and Synchrony Ventures have pledged $20 million to date in venture capital funds led by Black, Hispanic and female investing partners.

-  Since 2021, the company has strengthened its supplier diversity program by expanding internal initiatives and external outreach. As a result, in 2022, Synchrony achieved a 180 percent increase in the number of proposal submissions by diverse suppliers and nearly 70 percent of those were selected to do business with Synchrony.

-  Synchrony and the Synchrony Foundation's $50 million, five-year initiative, Education as an Equalizer, increases access to higher education, skills training in high-growth fields, and financial empowerment for underserved communities and its own workforce.

-  The company has committed to hire, upskill, advance and improve retention for Black talent without four-year degrees into middle skill and family-sustaining wage jobs. Synchrony has joined OneTen, a coalition of leading companies that is committed to creating a more inclusive corporate America by hiring and promoting one million Black individuals into family-sustaining jobs over the next decade. 

-  Synchrony hosts an annual Global Diversity Experience for all employees, leaders and members of its Board of Directors to deepen understanding while advancing a culture of belonging and well-being for all.