NEW YORK (1010 WINS/WCBS 880) – BlackGen Capital, the nation's premier student-run investment fund run by underrepresented minorities, was created in November 2019 at Cornell University as a response to the stark underrepresentation of Black, Hispanic, and Native American students in the university's finance community.
Two founding members, Yasmin Watt and Savannah Holsey, spoke with WCBS 880 anchor Levon Putney on a special episode for Black History Month. Yasmin, from Teaneck, New Jersey, now working at BlackRock and Savannah, from Queens, now a strategy analyst at Deloitte, both graduates of Cornell University, shared their experiences and personal journeys with Putney.
According to Watt and Holsey, BlackGen Capital was necessitated by a gap in access and resources for minority students seeking careers in finance.
“So at Cornell itself, underrepresented minorities make up less than 5% of every finance-centered organization on campus,” Watt said. “So we saw a need for an organization like BlackGen Capital on campus.”
"And a common experience that we all shared was that it was another investment fund," Holsey said. "Education was great. People were great, but we looked around and were like, ‘We are the only two Black people in this room.’"
The organization’s mission is to close the access gap for talented minority students. Watt explained that through a 10-week educational program, BlackGen Capital trains its members in the fundamentals of finance. The students then get to pitch real investment ideas, a rare opportunity that sets BlackGen apart from the rest.
"In our community, access to financial literacy and things of that nature is already so little," Watt said. "And the point of BlackGen Capital itself is to move that needle and make an impact on the industry and abroad."
Members also gain exclusive access to networking events and recruitment opportunities, thanks to corporate sponsors who are just as invested in this cause.
"I think this is necessary just to show other Black people that you can do anything that you want to do, " Holsey said. “A field like finance is for you, regardless of what you look like, regardless of your skin tone, and regardless of what the industry looks like right now.”
Watt spoke about the efforts made to impact not only their members but also the broader community by organizing events to promote financial knowledge. "So we would have a financial advisor come and speak to students and answer all their questions about financial literacy."
The founders also emphasized how they try to make investing fun. "We try to make it exciting because we want more and more of our people to see, this is important," Watt said. "This is what can kind of change the game for us and lead us into generational wealth going forward."
Watt and Holsey said they are fostering a movement to empower and encourage the Black community to participate actively in building their financial future, one investment at a time.
When asked whether it takes money to make money, especially for those with a tight budget. Holsey suggested starting small, "One thing that I've learned is savings is really important...But for the average person, I think savings is super important. So having a 401(k), that's a natural investment."
"I think, the Black community in general, we're kind of not as willing to invest,” Watt said. “But I believe that even if you have $10, $20, $100, that's still enough for you to be investing in the markets or in any investment.
Holsey commented on the parallels between their work and historical examples like Black Wall Street. "I do feel like what we're doing is similar in that way to Black Wall Street," Holsey said.
She spoke about the root of community and self-belief in a world often contrary to these values. "I think cultivating that internal motivation for us to go out into the world and then establish businesses, be knowledgeable in fields like finance," she said.
“I feel like we are empowering and mobilizing our community in this space...And we're kind of trying to get that back here in our own way," Watt added.
When discussing the broader historical context of financial literacy within the Black community, Watt noted, "We have a very, very deep rooted and strong history where people who look like us are kind of fearful of putting their money into markets." She emphasizes the need to empower the community to invest. Holsey highlighted the process of unlearning fear associated with money.
Watt and Holsey’s mission is to see BlackGen Capital be a pivotal reason for the success of Black people in the financial industry and in managing their finances, making it not just a necessity but an enjoyable journey.
"We're here and once we learn this information, we're here to pay it forward for generations to come,” Watt said.