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Predistribution Initiative, a US-based non-profit organisation supporting financial industry reform, is helping to launch the framework to help reduce “systemic risks to the health of the overall economy”, Delilah Rothenberg, the group’s executive director, told New Private Markets in an interview in January.
TIFD is not expected to launch for a few years. In the meantime, Rothenberg said more work is needed to better understand which practices are fair or foul.
“The industry needs to think about how the funds of private equity managers are structured and whether those funds are structured to avoid paying taxes,” she said. “Where do you draw the line between taxefficiency and irresponsible tax practices?”
The Predistribution Initiative is devoted to reducing inequality by changing the basic business practices of Wall Street. What will it take for it to succeed? Delilah Rothenberg has obsessed over inequality since her college years at NYU, where she studied neo-colonialism and neo-imperialism as a triple major in history, politics and African Studies […] Rothenberg quit her private equity job in 2018 to co-found The Predistribution Initiative, devoted to reducing inequality by changing the basic business practices of Wall Street. “It’s complex and it’s not something you can show a picture of in real life like a hungry child or a vulnerable woman,” Rothenberg says.
ESG and impact investing organizations are taking note as America’s fourth biggest pension system acts against the movement.
PDI in the News
The Predistribution Initiative, a US-based non-profit organisation seeking to create a more equitable global financial industry, hosted the virtual discussion, which covered recent and upcoming rules proposals from the US Securities and Exchange Commission […]
According to Delilah Rothenberg, The Predistribution Initiative’s executive director, regulatory loopholes do not stop at environmental reporting.
“Inequality is growing at a systemic level,” Rothenberg said. “If portfolio companies are burdened with too much debt, will they be in a position to offer quality jobs and affordable goods and services?”
She added: “Is extracting value from companies taking away from the company’s ability to operate and serve its corporate purpose... is fund manager compensation growing at an exponentially faster rate than for workers of portfolio companies and beneficiaries of the LPs?”