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Lack of Women Set to Cost Male-Dominated Private Equity More

  • EQT’s debt interest linked to number of women on team
  • Coupons will also rise if EQT’s firms miss ESG targets
Updated on

Private equity’s women problem is about to become a shade more costly -- at least for Sweden’s EQT AB and the companies it sponsors.

As part of a 500 million-euro ($612 million) bond issue priced earlier this month, Stockholm-listed EQT took the unprecedented step of agreeing to pay lenders a higher interest rate if it failed to increase the percentage of women in its investment team, according to the sale prospectus. With women accounting for just 21% of the team currently, it set itself a target of 28% by 2026.