The initiative centers around ILPA’s updated Due Diligence Questionnaire (DDQ) and Diversity Metrics Template, which will standardize investors’ due diligence process and provide a framework monitoring progress on diversity, equity, and inclusion (DEI) among private equity portfolio companies. This framework includes FCLTGlobal’s Disclosure Template for Portfolio Company Board Diversity, as published in The Missing Element of Private Equity: Creating Long-term Value Through Portfolio Company Board Diversity.
“Boards are vital in helping companies maintain a longer-term focus, whether the company is public or private. The recent focus on private equity-backed companies’ diversity provides a significant opportunity to promote corporate DEI. ILPA and Nasdaq will be instrumental in growing our understanding of the status quo and tracking progress over time,” said Ariel Babcock, FCLTGlobal’s Head of Research.
Nasdaq – an FCLTGlobal member – has concurrently announced that it will collect and make its DEI data available for investors free of charge via the Nasdaq eVestment platform in an effort to improve transparency and standardization. Private fund managers are invited to provide their data, beginning today, to ensure their firm is accurately represented.
In line with the work published by both FCLTGlobal and ILPA, Nasdaq’s eVestment platform will collect and make available information on:
- Diversity metrics for management company firm ownership, investment committee, and professionals.
- Aggregated diversity metrics for board and senior management of private funds’ portfolio companies.
Diversity dimensions include gender, race/ethnicity, identification as LGBTQ+ and veterans, and persons with disabilities. Private fund manager DEI data will be accessible to qualifying institutional asset owners within Nasdaq eVestment’s private markets database, which includes information on more than 6,000 private fund managers’ investment strategies and fund performance.
To view ILPA’s DDQ and Diversity Metrics Template, click here.
To learn more about Nasdaq’s eVestment data collection, register for access to the dataset, or submit your firm’s information, click here.
To learn more about FCLTGlobal’s research on the impacts of diversity within private equity-backed company boards, click here.
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FCLTGlobal’s mission is to focus capital on the long term to support a sustainable and prosperous economy. We are a non-profit organization whose members are leading companies and investors worldwide that develops actionable research and tools to drive long-term value creation for savers and communities.
Ross Parker, Director of Communications, [email protected]