Prudential makes $200M commitment to diversity, equity and inclusion through private equity investments
August 18 2021 - 8:45AM
Business Wire
The new Prudential DEI Portfolio will invest in early-stage
private equity firms with diverse ownership
Prudential Financial, Inc. (NYSE: PRU) has made a $200 million
commitment through the Prudential DEI Portfolio to private equity
investments constructed with a diversity, equity and inclusion
(DEI) lens. Investments will focus on limited partner stakes with
substantial ownership and/or management by women and minorities,
particularly those raising capital for first or second funds.
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Within private equity, structural barriers exist that prevent
women-led and diverse teams from raising sufficient capital in
support of their first funds. As such, only 1.3% of the investment
industry’s $69 trillion in assets under management is managed by
women or people of color.1 This is despite the fact that, according
to the International Finance Corporation, gender-diverse fund
management teams deliver an incremental 10%-20% in returns compared
to non-gender-diverse teams.2
“Our goal in managing the DEI Portfolio is to provide equity of
opportunity for segments that often face challenges in the
fundraising process, while also maintaining the rigorous investment
standards we’re known for,” said Cherrise Cederqvist, vice
president at PGIM Investments, leading the DEI Portfolio program.
“Ultimately, we expect the investments made through the DEI
Portfolio to result in greater representation and increased assets
under management for women and minority-owned investment firms over
time.”
The DEI Portfolio Investment Steering Committee, led by a
diverse group of executives across Prudential and its global asset
management business, PGIM Inc., will govern future investments and
evaluate funds based on specific factors including diversity of
fund management ownership, diversity of the portfolio management
team and impact of the investment strategy on diverse
populations.
Providing capital to early-stage managers complements
Prudential’s existing investments in later-stage alternative asset
firms owned and operated by women and minorities. The company
currently oversees nearly $1.2 billion in AUM invested in
well-established private equity funds, hedge funds and real estate
funds whose management teams have a substantial or majority
ownership by an ethnic minority or woman.
“We are committed to meaningfully developing and growing women
and minority managers by ensuring the selection process is
equitable and inclusive across the full spectrum of early and late
stage funds,” said Lata Reddy, senior vice president for
Prudential’s Inclusive Solutions organization. “By providing
intellectual and financial capital, and by serving as an advocate
for this segment, we are seeking to break down the structural
barriers that prevent diverse-led teams from raising capital.”
About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a global financial
services leader and premier active global investment manager with
more than $1.5 trillion in assets under management as of June 30,
2021, has operations in the United States, Asia, Europe, and Latin
America. Prudential’s diverse and talented employees help to make
lives better by creating financial opportunity for more people.
Prudential’s iconic Rock symbol has stood for strength, stability,
expertise and innovation for more than a century. For more
information, please visit news.prudential.com.
About PGIM
PGIM, the global asset management business of Prudential
Financial, Inc. (PFI) (NYSE: PRU), ranks among the top 10 largest
asset managers in the world3 with more than $1.5 trillion in assets
under management as of June 30, 2021. With offices in 16 countries,
PGIM’s businesses offer a range of investment solutions for retail
and institutional investors around the world across a broad range
of asset classes, including public fixed income, private fixed
income, fundamental equity, quantitative equity, real estate and
alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not
affiliated in any manner with Prudential plc, incorporated in the
United Kingdom, or with Prudential Assurance Company, a subsidiary
of M&G plc, incorporated in the United Kingdom.
1
Bella Research Group and the John S. and
James L. Knight Foundation, “Diversifying Investments: A Study of
Ownership Diversity and Performance in the Asset Management
Industry,” Jan. 28, 2019.
2
International Finance Corporation,
“Report: Moving Toward Gender Balance in Private Equity and Venture
Capital,” March 7, 2019.
3
Prudential Financial, Inc. (PFI) is the
10th largest investment manager (out of 527 firms surveyed) in
terms of global assets under management based on Pensions &
Investments’ Top Money Managers list published on June 1, 2020.
This ranking represents global assets under management by PFI as of
March 31, 2020.
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MEDIA CONTACT: Kylie Scott 973-902-2503
kylie.scott@pgim.com
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