First-of-its-kind facility supports Carlyle’s goal of 30% diverse board directors across its portfolio companies
NEW YORK, Wednesday, February 17, 2021 – Global investment firm The Carlyle Group (NASDAQ: CG) today announced it has secured the largest ESG-linked private equity credit facility in the US for $4.1 billion and the first to focus exclusively on advancing board diversity. Carlyle structured this revolving credit facility for its Americas corporate private equity funds, with the price of debt directly tied to the firm’s previously set goal of having 30% diverse directors on the boards of Carlyle controlled companies within two years of ownership.
Carlyle will continue its efforts to work closely with portfolio companies to achieve its 30% board diversity goal, with measurable KPIs. Over the past three years, Carlyle’s research has shown that the average earnings growth of Carlyle portfolio companies with two or more diverse board members has been approximately 12% greater per year than companies that lack diversity, underscoring the correlation of board diversity with strong financial decisions and performance.
“In today’s accelerating world, we are improving outcomes with an innovative financing vehicle for our corporate private equity funds that directly supports the firm’s ongoing commitment to increasing board diversity as part of our integrated approach to building better businesses,” said Carlyle CEO Kewsong Lee. “As one of the world’s leading global investment firms, we have a significant opportunity to drive both growth and impact in an aligned way as we create long-term value for our companies, investors, shareholders, and communities.”
“Carlyle has long held the belief that diverse perspectives lead to great investment decisions, and this facility marks a tremendous milestone in our strategy to find opportunities at the intersection of financial performance and impact,” said Kara Helander, Chief Diversity, Equity and Inclusion Officer at Carlyle. “We’re excited about the opportunity ahead to incorporate this facility into our multi-faceted approach to drive better results across our spheres of influence.”
The facility is led by Bank of America and backed by a consortium of leading global financial institutions.