Nasdaq is to collect and make its private fund manager diversity, equity, and inclusion (DEI) data available for investors free of charge via the Nasdaq eVestment platform in an effort to improve transparency and disclosure standardisation across the industry. The data will be available starting on 16 February, 2022.
Nasdaq has worked with the Institutional Limited Partners’ Association (ILPA) and FCLTGlobal to ensure its data collection aligns with ILPA’s newly published Diversity Metrics template, and respective guidelines published by each group. By aligning to these industry standards for private fund manager DEI data, Nasdaq aims to reduce barriers to information being shared and in turn increase ease of access and transparency for asset owners into the DEI efforts of private fund managers.
Private fund manager DEI data will be accessible to qualifying institutional asset owners within Nasdaq eVestment’s private markets database, which includes profiles on more than 6,000 private fund managers detailing investment strategy, fund performance and more.
“Fund managers have experienced significant challenges in trying to comply with requests from investors asking for different data points in varying formats,” says Katey Bogue, Vice President and Head of Nasdaq Private Fund Solutions. “We first need to remove that friction and then we can support meaningful changes through accurate and reliable data. Through our collaboration with ILPA and FCLTGlobal we hope to provide an efficient and streamlined framework for DEI disclosure and enhanced transparency for the investment community.”
Private fund managers are invited to provide their data to Nasdaq’s eVestment platform beginning today, to ensure their firm is accurately represented prior to access being granted to qualifying institutional asset owners. In line with the templates published by ILPA and FCLTGlobal, Nasdaq’s eVestment platform will collect and make available information on:
• Diversity metrics for investment company firm ownership, investment committee and professionals.
• Aggregated diversity metrics for board and senior management of private funds’ portfolio companies.
• Diversity dimensions include gender, race/ethnicity and identification as LGBTQ+, veterans and persons with disabilities.
“We’re thrilled to see Nasdaq adopt the designations and structure of our Diversity Metrics template into their DEI data collection initiative and to also take a significant step in driving transparency into the level of progress the industry is making around diversity,” says Jen Choi, Managing Director of Industry Affairs, ILPA. “Ensuring consistency of how information is communicated across the industry by aligning with the guidelines we and FCLTGlobal have published will also have a positive impact on the empowerment of limited partners, which we’re always pleased to support.”