Gilde Healthcare Partners is the latest private equity firm to create an independent sustainability advisory board – a model also used by firms such as KKR and Neuberger Berman.
Gilde – not an impact firm – has created an “impact council” made up of former executives of public, non-profit and for-profit institutions in the healthcare sector.
The council will advise Gilde on deal due diligence and portfolio company management “on an as-needed basis”, covering topics such as research and development, “go-to-market strategies” and “better care at lower cost potential for each of our companies”, according to a spokesperson for the $2 billion-AUM firm. Gilde will engage members individually as needed, and the full council will meet formally several times a year, the spokesperson said.
A handful of private equity firms have established sustainability committees of independent experts not formally employed by the firm. KKR announced a six-member sustainability expert advisory council one year ago. “Having the advice of independent outside experts and advisers makes us smarter and helps us anticipate important ESG trends,” KKR’s co-head of global impact, Ken Mehlman, told Fortune at the time.
Neuberger Berman created an independent ESG advisory council last year to advise on portfolio decarbonisation and the firm’s sustainability measurement methods. Also of note: EQT and Bain Capital have impact advisory boards of independent experts for their impact strategies.