The W.K. Kellogg Foundation has announced a partnership with Progress Investment Management Company LLC to develop an emerging manager program that will actively support and cultivate smaller, entrepreneurial, high-potential investment management companies.

Under the terms of the partnership, the foundation will invest up to $100 million in a diversified portfolio of emerging fixed income and equity managers that will be managed by Progress. The program is designed to generate positive market-rate returns for the foundation while providing entrepreneurs in the investment industry with the resources they need to build their businesses.

Progress defines "emerging managers" as registered investment firms with at least 51 percent employee ownership and $2 billion or less in assets under management, as well as women- and minority-owned investment advisors, regardless of size. Because of their entrepreneurial cultures and emphasis on innovative investment strategies and active management, emerging managers historically generate greater returns for early stage investors.

"By establishing the emerging manager program, we are executing on our commitment to live out our core mission in everything we do," said Joel Wittenberg, chief investment officer of the Kellogg Foundation. "We have a long tradition of helping vulnerable children achieve success as individuals and as contributors to the larger community and society. Through this program, we are extending that cycle of support by investing in the talent pipeline and providing opportunities for high-potential managers to grow their businesses. We believe that expanded access to emerging managers leads to increased innovation, diversity, independence, and equality in the investment industry, and ultimately will help strengthen our communities."