In brief: Astorg sets 40% board diversity target for future deals

A total of 28% of GPs have set board diversity targets for portfolio companies, ILPA reported in 2021.

Private equity firms are increasingly setting diversity targets for the boards of their portfolio companies. The latest firm to take such a step is Astorg, a mid-market buyout shop that aims for 40 percent of each board’s members to be women or underrepresented minorities for all future investments.

Astorg will have two years post-acquisition to meet this target for each portfolio company. One of the firm’s measures is to increase the diversity in its own investment team, as its members take board seats in acquired companies.

Astorg’s investment team is made up of 21 percent women, the firm’s ESG director Viviana Occhionorelli told New Private Markets. It will also up the number of appointed independent board members for portfolio companies, according to a statement from the firm.

The Institutional Limited Partners Association reported last year that 28 percent of GPs have set minimum targets for board level diversity.

Astorg is raising its eighth flagship fund, a buyout strategy with a €6.5 billion target. The firm is also investing a midcap fund that raised €1.25 billion earlier this year. Fund VII, which closed on €4.24 billion in 2019, is fully invested.