Illumen Capital, a fund-of-funds impact investor focused on racial and gender diversity in investing, has closed its second fund at $168 million, led by the Ford and WK Kellogg foundations along with more than 100 other investors.

The fund was oversubscribed, exceeding its initial target by around $50 million and nearly doubling the fundraising of its $88 million predecessor. The fresh capital will allow the firm to further scale its efforts to build a more optimal and inclusive asset management industry.

The firm helps fund managers implement strategies to reduce racial and gender bias in hiring, investments, and company operations, in partnership with Stanford SPARQ, a behavioral science think tank at Stanford University.

“Following our nation’s racial reckoning in the summer of 2020, institutional investors made bold proclamations of investing in diverse managers and entrepreneurs; unfortunately funding of diverse-led entities has receded drastically over the past year,” said Daryn Dodson, Managing Director of Illumen Capital. “

Illumen Capital invests in venture, growth and PE funds with a focus on racial and gender equity in its investments. This fund will invest in education, health and wellness, climate and sustainability and financial inclusion.