Robert F. Smith’s Background:
Robert F. Smith is the founder of Vista Equity Partners, a highly successful private equity firm with $73 billion in assets under management and a global workforce of 70,000 employees across portfolio companies.

Defining Success as a Black Child:
Growing up, Robert F. Smith viewed success through the lens of his community and family, aspiring to make a positive impact, provide for his loved ones, and contribute to the well-being of his neighborhood.

Race and Wealth Creation:
Bob Green highlights a common misconception that achieving wealth and success diminishes one’s racial identity.

Open and Honest Conversation:
Robert F. Smith and Bob Green aim to have an open and honest conversation about race, wealth creation, and the unique experiences of African-Americans in America.

Early Experiences:
Robert F. Smith grew up in a segregated neighborhood in Denver, Colorado, during a time of desegregation. Forced busing was implemented to desegregate schools, but resource allocation was unequal, highlighting economic disparities. Smith faced firsthand the challenges of being in an economically disadvantaged community.

Defining Success in Childhood:
Success was defined by making parents proud and avoiding disappointment. Excelling in school, participating in extracurricular activities, and contributing to the community were key elements of success. Smith emphasizes the importance of community involvement and helping others.

Community Involvement:
Neighbors played a vital role in the community, providing support and guidance to children. Smith’s upbringing instilled in him a sense of responsibility and the importance of being a contributing member of society. The notion of community and contributing to it became an integral part of his definition of success.

Cornell University and Redefining Success:
Smith’s parents emphasized the importance of high-quality education. At Cornell, Smith focused on academic excellence and community involvement. He joined the Alpha Phi Alpha fraternity and engaged in community service programs. Smith utilized his resources to provide opportunities for Ithaca high school students to visit HBCUs and explore higher education options.

Community Involvement and Service:
Robert F. Smith emphasizes the importance of contributing to the community as part of the college experience. Creating scholarship programs that benefit African-American students at Cornell University, which still yield significant funds. Fraternity brothers continue to support local activities even though the chapter is spread out geographically. Service and academic excellence go hand in hand for true success.

Expression of Regret and Apology:
Bob Green expresses regret for the actions of Kappa Alpha Psi towards Robert F. Smith during their college years. The chapter acknowledges their mistake and apologizes for the exclusion. The honor of pledging at the Alpha chapter became available to Robert F. Smith, which he accepted.

Defining Success in Initial Career:
Robert F. Smith initially pursued a career as a chemical engineer. He focused on applied research and development, earning US and European patents for unique ideas, processes, and inventions. For him, achieving success meant coming up with original ideas that no one else had conceived before.

Black Enterprise Media and Peer Mentors:
Black Enterprise magazine featured articles about successful Black business leaders like John Utendall, Ray McGuire, and Stan O’Neill. Robert F. Smith and his fraternity brothers were inspired by these stories and began researching and discussing these entrepreneurs’ accomplishments.

Importance of Capital:
Smith realized the significance of capital in shaping communities and opportunities after observing the achievements of successful Black business leaders. He attended business school to gain a deeper understanding of capital and its impact.

Joining Goldman Sachs:
Smith was particularly drawn to the Mergers and Acquisitions (M&A) department at Goldman Sachs. He saw M&A as a way to learn about the highest levels of capital structure and how it affects capital deployment and engagement globally.

Success at Goldman Sachs:
Smith excelled in the M&A department at Goldman Sachs, becoming one of their most successful bankers in the enterprise software space. He was later given the opportunity to open an office in Silicon Valley and became a prolific banker there.

Entrepreneurial Spirit:
Robert F. Smith acknowledged his success at Goldman Sachs but expressed his desire to pursue entrepreneurship. He recognized the lack of African-American entrepreneurs and believed he had unique skills and knowledge to make a difference.

Risk-Taking and Inspiration:
Smith emphasizes the importance of risk-taking and embracing uncertainty. He credits mentors like John and Ray for providing guidance and support when he was asking fundamental questions about capital and finance.

Tech Industry Exposure:
Smith’s role as the first M&A person on the ground in San Francisco exposed him to the tech industry’s early days. He interacted with companies like Apple, Microsoft, Yahoo, and eBay, gaining insights into technology’s impact on productivity.

Experience in Manufacturing:
Smith’s experience implementing programmable logic controllers in a manufacturing plant demonstrated the power of computing in increasing productivity. He realized the potential for enterprise software to improve efficiency in businesses, leading to increased earnings and reduced costs.

Family Influence and Support:
Smith’s grandfather, despite concerns about the uncertainty of entrepreneurship, ultimately encouraged him to pursue his passion. Smith acknowledges the historical discouragement faced by African-Americans in starting businesses and emphasizes the joy and liberation that come with taking risks.

Mentoring and Sharing Knowledge:
Smith conducts regular sessions with the Morehouse class of 2019, imparting his experiences and lessons learned as an entrepreneur. He believes in mentoring and supporting young people, particularly African-Americans, to overcome obstacles and pursue their entrepreneurial dreams.

Risk and Ecosystem Engagement:
Risk-taking is essential for advancing society. Risk capital plays a vital role in economic growth and development. Investors and capital allocators share the responsibility of taking calculated risks. NAIC’s role in enabling diverse firms to engage effectively with capital allocators.

High-Quality Jobs and Experiences:
VISTA Equity Partners’ portfolio companies increase employment by an average of 20% during their investment period. VISTA emphasizes diverse boards, with 70% having a person of color and 60% having a woman. Commitment to driving more efficient use of capital and community engagement.

Conscious Inclusion and Carbon Neutrality:
VISTA’s Conscious Inclusion program promotes diversity and inclusion across portfolio companies. Goal for every portfolio company to become carbon-neutral or carbon-negative before exiting VISTA’s investment. VISTA provides systems to de-risk investments and assess risk effectively.

De-Risking:
To decrease the amount of debt individuals have, they need to move away from taking on large amounts of student loan debt and explore alternative structures for financing higher education.

De-Risking Business:
To de-risk business, African-American and Latinx entrepreneurs need to be provided with quantifiable solutions and a platform that supports their success.

Taking Risks to Honor Previous Generations:
African-Americans and Latinx people need to take risks to deliver more services and capital into their own communities, honoring the civil rights movement and the opportunities it provided.

Martin Luther King’s Risk:
Martin Luther King took on significant risks in his fight for civil rights, even though he had a stable job as a pastor.

The Decline of Defined Benefit Pensions:
The civil rights movement provided access to great employment opportunities with defined benefit pensions, which offered financial security. However, these defined benefit pensions have declined over time, leading to a loss of wealth for many individuals.

The Economic March on Washington:
The March on Washington was about economic opportunity for African Americans, led by Dr. Martin Luther King, Jr. The civil rights movement resulted in opportunities for African Americans to participate in the economy through employment and pension plans.

Pension Plans:
Pension plans, such as those for teachers and government employees, hold a significant amount of capital. African Americans have historically contributed to these plans, but the payouts they receive are often not equal to their contributions. Some pension fund managers are not considering diversity in their asset management, resulting in a lack of opportunities for African American managers.

Unsovereign Wealth Fund:
The idea of an unsovereign wealth fund in the U.S. is proposed to address the wealth gap and create opportunities for African Americans and other marginalized communities. The fund would utilize the capital residing in pension plans to create opportunities and address problems in underserved communities. Such a fund would require evaluation, action, and proposals to effectively solve these issues.

The Impact of Redlining on African American Wealth:
Redlining, a discriminatory practice that denied mortgages to African Americans, depressed their ability to participate in wealth creation through housing. African Americans have one-tenth the wealth of white Americans, and addressing this disparity could increase the U.S. GDP by 1.5-5.6%.

The Ecosystem of Opportunity:
Fund managers, pension funds, and asset managers need to work together to ensure that African American managers have a fair share of allocation and can deliver value creation and jobs to underserved communities.

Robert F. Smith’s Philanthropy and Influence:
Robert F. Smith is widely known for his philanthropy, which focuses on systemic change and addressing economic inequality. He has birthed solutions such as the 2% solution, hyperfunding civic organizations, and advocating for diversity and inclusion in investment management. Smith’s influence stems from his personal experiences, the history of the civil rights movement, and his desire to create a beloved community with economic opportunity for all.

Spiritual Learnings and Community Influence:
Robert Smith emphasizes the significance of spiritual teachings and the influence of God in his life. He acknowledges the impact of his community, highlighting examples of individuals who selflessly contributed to their community’s growth, inspiring him to seek scalable solutions.

Systemic Racism Requires Systemic Solutions:
Smith identifies systemic racism as the most pressing issue, requiring systemic solutions rather than one-off approaches. He stresses the need for systemic solutions to address the lack of access to banking services in African American communities.

Modernizing and Capitalizing Community Banks:
Smith proposes modernizing and capitalizing community banks using technology and innovative financial instruments like Equality Progress sustainability bonds. He suggests leveraging resources from institutions like Bank of America and Aerial Capital to support small and medium African-American and Latinx businesses.

Addressing Broadband Access Disparities:
Smith highlights the lack of broadband access in African-American homes, exacerbating educational disparities during the pandemic. He calls for systemic solutions to ensure equal access to broadband infrastructure.

Using Relationships and Infrastructure:
Robert F. Smith emphasizes the importance of leveraging relationships and infrastructure to address educational inequities. He highlights the need for collaboration with companies like T-Mobile, Verizon, and AT&T to provide LMS systems and connectivity to underserved communities. Smith stresses the significance of utilizing the infrastructure bill to support these efforts.

Defining Highest and Best Use:
Smith reflects on his role and responsibilities as an individual with resources and influence. He believes his highest and best use is to advocate for changes in capital distribution to benefit underserved communities. Smith emphasizes the importance of following this calling with passion and dedication.

Honorary Doctorate Speech at Morehouse:
Bob Green commends Smith’s honorary doctorate speech at Morehouse, where he focused on the contributions of others rather than his own achievements. Green highlights the impact of Smith’s speech on the audience, particularly a dean who was visibly moved by the message.

Behind the Speech:
Smith reveals that the idea for his speech came about a year prior during a visit to Morehouse. He explains the significance of the “candle in the dark ceremony” and how it inspired him to use his platform to address systemic issues. Smith describes the process of preparing for the speech, including gathering data, conducting research, and seeking guidance from mentors.

Speech Delivery and Impact:
Smith shares the emotional experience of delivering the speech, describing it as a deeply personal moment. He highlights the positive feedback he received from students, faculty, and the broader community. Smith emphasizes the importance of using one’s platform to speak up for those who are often marginalized and forgotten.

Robert F. Smith’s Liberation of Human Spirit:
Robert F. Smith believes in liberating the human spirit to achieve its full potential, enabling individuals to pursue their dreams and aspirations. He emphasizes the importance of removing burdens, particularly financial burdens, to foster freedom of thought and action.

Surprise Gift of Financial Freedom:
Smith’s surprise gift of paying off the student loans of the entire 2019 graduating class of Morehouse College was motivated by his desire to liberate their spirits and provide them with financial freedom. He wanted to free the students from the burden of debt so they could focus on pursuing their passions and making a positive impact on society.

Multi-Generational Ripple Effect:
Smith recognized that his gift would have a ripple effect across generations, benefiting not only the students but also their families and communities. He understood that financial freedom can create opportunities for success and upward mobility for future generations.

Importance of African-American Male Role Models:
Smith acknowledges that his gift had a profound impact on the students, particularly because it came from an African-American male at Morehouse. He emphasizes the significance of seeing successful African-American role models, as they inspire young people to envision themselves achieving great things.

Media Representation and Inspiration:
Smith stresses the importance of portraying African-Americans in the media in a positive and inspirational way. He believes that seeing successful African-Americans in various roles can help young people break down barriers and envision their own potential.

Impact of Dr. Martin Luther King’s Assassination:
As a young boy, Smith witnessed the assassination of Dr. Martin Luther King Jr. on television. This event had a profound impact on him, shaping his views on racial injustice and the need for social change. Smith’s experiences and reflections have influenced his philanthropic work and his commitment to making a positive difference in the lives of African-American youth.

Grieving the Loss of Dr. Martin Luther King, Jr.:
As a six-year-old, Robert F. Smith experienced the assassination of Dr. Martin Luther King, Jr. His mother and many women in the neighborhood created black armbands for the children to wear to school as a sign of mourning. Smith felt heartbroken by the lack of empathy from his classmates, who didn’t seem to share his grief.

The Election of Barack Obama:
Smith contrasts the pain he felt during the assassination of Dr. King with the hope and inspiration he experienced during Barack Obama’s presidential campaign and inauguration. He recalls the day he saw Obama raise his hand on the Bible and take the oath of office, describing it as a powerful and emotional moment.

Empathy and the Murder of George Floyd:
Smith reflects on the contrast between the lack of empathy he experienced after Dr. King’s assassination and the outpouring of empathy he witnessed in response to the murder of George Floyd. He highlights the significance of seeing a community of Americans expressing empathy and solidarity with the African-American community during this time of grief and injustice.

Perspective on Racism:
Robert F. Smith highlights the stark contrast between the current racial climate and his childhood, emphasizing the ongoing struggle against racism and the need to address it head-on until it ends.

Grandfather’s Inauguration Experience:
Smith recounts taking his 93-year-old grandfather to President Obama’s inauguration, a moment of immense significance for both of them.

Grandfather’s Work in the Senate:
Smith shares his grandfather’s story of working in the Senate lounge as a teenager, serving coffee and tea to senators.

Grandfather’s Reflection on Change:
During the inauguration, Smith’s grandfather reflects on the transformative change in America, from seeing no black faces in the crowd at FDR’s inauguration to witnessing the inauguration of the first African-American president.

Dreams for Children:
Smith discusses his aspirations for his children, emphasizing the importance of addressing their emotional well-being and supporting them through difficult times, such as the recent murder of Daunte Wright.

Lessons for Life:
Robert F. Smith believes in the power of change and the importance of ending racism in the country. He believes that everyone has the capacity to make a difference, regardless of the size of their platform. He emphasizes the significance of love in solving problems and stresses the need to speak and move with love in one’s heart.

Three Rules and Gifts:

Smith provides three rules and gifts for his children:
1. “You are enough”: Emphasizing their ability to make a difference, create change, and help others.
2. “Discover the joy of figuring things out”: Encouraging them to find joy in problem-solving and learning.
3. “Love is all that matters”: Promoting love as the answer to problems and advocating for a “beloved community.”

Final Words:
Bob Green expresses gratitude for Robert F. Smith’s wisdom and contributions to the organization and community. Smith acknowledges Green’s appreciation and encourages everyone to continue doing their part in their respective communities. Both individuals express optimism and determination to move forward and make a positive impact.