ILPA Releases New Diversity Report
The Institutional Limited Partners Association (ILPA) today released the first report in its Diversity in Action – Sharing Our Progress series.
The report series is an extension of ILPA’s Diversity in Action initiative, first announced in December 2020, and aims to provide actionable recommendations on steps that can be taken to improve diversity, equity and inclusion in private markets based on the experience of the initiative’s limited partner, general partner and investment consultant signatories.
“We are tremendously proud of the industry response to our Diversity in Action initiative. When we first kicked off in December we had nearly 50 founding signatories; today over 130 LPs, GPs and investment consultants have signed on,” said Steve Nelson, CEO of ILPA. “Not only are the Initiative signatories working to improve DEI through action, they’re also committed to sharing their successes and the lessons they’ve learned with one another. I’m confident that this information exchange will help accelerate our industry’s progress.”
The first report focuses on how signatories are approaching DEI metrics and data capture. ILPA found that there is a strong desire for standardization and an appetite to expand metrics to cover additional underrepresented groups. Among signatories, 2-in-3 use the ILPA D&I Team Metrics Template which provides a model for reporting diversity metrics across 11 role categories, including gender and suggested race and ethnicity designations. ILPA and Initiative signatories are now working to expand the template to include metrics not represented today including: a non-binary/not disclosed option on gender, LGBTQ, veteran status, disability and age.
The Diversity in Action – Sharing Our Progress report series will also track activities that signatories have in place which are designated as optional in the Initiative Framework. Over time reports will show where progress is being made and where change is still needed. As of April 2021, the most widely adopted optional activity among signatories was focused on accountability: 81% of signatories “assign senior-level DEI accountability, aligned with an investment or senior management role”. The least widely adopted optional activities among signatories relate to talent pipeline and inclusive culture: just 4-in-10 signatories indicate that they “have in place diverse employee resource groups” or “incorporate contributions towards advancing DEI into employee performance reviews.”
“We’re delighted to share this report with the industry,” offered ILPA’s Managing Director of Industry Affairs and Diversity in Action initiative lead Jen Choi. “We’re also thrilled to have such a large and committed group of industry stakeholders, and we are looking forward to seeing the progress they make over time in improving DEI in private equity.”
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