Mill Road Capital Launches Progressive Governance Fund
Mill Road Capital is launching a new fund, the Mill Road Progressive Governance Fund (“MRPG”), in the second quarter of 2021. The fund has an initial target of $500mn. MRPG’s will take large equity positions in small-cap companies and appoint board members capable of improving the culture and character of the boards in those target companies. The strategy aims to improve the functioning of boards by adding directors with the ability to drive long-term value creation, while also enhancing the culture of boards by bringing in more diverse viewpoints and committing that at least 50 percent of its director nominees will be women or people of colour.
“Our Sponsoring Investor fund aims to change the way public companies are governed in America,” said Thomas Lynch, Senior Managing Director and Founder of Mill Road. “With passive index funds becoming the largest voting bloc in public equities, shareholders now more than ever need a skilled, engaged, and aligned partner on the board to ensure the highest standards of operational and social governance are upheld. The Progressive Governance Fund was created to be that partner.”
Former Jamba Juice CEO James D. White has joined Mill Road as a Managing Director and the Head of Board Governance and Diversity Initiatives. he has long been an outspoken advocate of diversity in the boardroom. He recently wrote in the Harvard Business Review that changing company culture and internal systems, giving diversity officers more control and authority over HR systems, and encouraging merit-based diversity at the highest levels of a company will not only build a culture of diversity and equity, it will also improve the bottom line.
“Study after study has shown that racial and ethnic diversity in both the executive suite and the boardroom not only enhances company morale from top to bottom, but also improves financial performance, encourages innovation, and brings in new perspectives that lead to new opportunities,” said White. “Our mission at Mill Road is to understand the role of diversity, encourage it in all of our investments, and serve as the tip of the spear as corporate America takes this bold step forward into being more inclusive at the highest levels. I am very proud to be a part of this movement and am looking forward to helping Mill Road invest in and support companies with progressive social values and products.”
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