Private equity giant Blackstone today announced a radical decree that the boards of all the companies it invests in must have at least 33% of directors from “diverse” backgrounds.
As well as meaning BAME or LGBTQ people, Blackstone’s definition of diversity includes women, who already make up a third of directors on the FTSE-100.
However, it is seen as a well-intentioned start for the company, which is also launching a programme to improve employment opportunities for “underserved communities” – generally taken as meaning ethnic minority and poor people.
“While ambitious, this target is only a starting point from which we hope to grow,” the company said.
Blackstone's current high profile investments include Merlin, owner of Madame Tussauds and the London Eye
The target is for all new companies Blackstone invests in with its vast, $156 billion warchest, to be compliant within one year of Blackstone investing.
Blackstone invests in dozens of companies around the world every year, and the group said diversity will now become a key part of its due diligence checks before committing to a deal.
The company said it had previously used similar techniques to improve the sustainability of its portfolio of companies.
The group said last year that half of the board seats it staffed last year were with women.
Its pilot programme to help underserved communities, called Career Pathways, is a hiring programme aimed at identifying, recruiting and retaining candidates into middle-skilled roles in its investee companies.
Companies in the Blackstone portfolio will hire and mentor people under the programme.
