Research & Insights

Responsible investors need to take into account how fund management and investment structures may be exacerbating wealth and income disparities, as well as systemic market risk writes Raphaele Chappe and Delilah Rothenberg.

The Predistribution Initiative shares updates on its policy & economic outlook given COVID-19. Click here for more info.

This article is part of Business & Human Rights Resource Centre’s Rethinking Corporate Governance blog series. “Are investors well-positioned to represent human rights interests? This is core to a debate about new models of ‘stakeholder capitalism,’ particularly given last year's Business Roundtable’s statement on corporate purpose. As Paul Rissman points out in a prior blog in this series, “One quarter of US assets are now managed by shareholders who claim to be interested in returns driven by social and environmental considerations”, and they are pushing companies to act more responsibly.”

Delilah Rothenberg and Amanda Feldman on private equity, disclosure and rethinking the system.

Delilah Rothenberg and Amanda Feldman on private equity, disclosure and rethinking the system.

[…] “If Warren is wielding a stick, Delilah Rothenberg is dangling a carrot to entice the industry to reform itself. As founder of the Predistribution Initiative, she’s trying to nudge private equity fund managers to create investment structures that share wealth with workers and communities. Rothenberg spent 15 years in finance and private equity herself before having “a bit of an existential crisis” about her own responsibility in exacerbating inequality.”

“If Warren is wielding a stick, Delilah Rothenberg is dangling a carrot to entice the industry to reform itself. As founder of the Predistribution Initiative, she’s trying to nudge private equity fund managers to create investment structures that share wealth with workers and communities. Rothenberg spent 15 years in finance and private equity herself before having “a bit of an existential crisis” about her own responsibility in exacerbating inequality.”

“Reforming capitalism is all the rage. Many of us in the ESG and impact investing communities are enthusiastic about calls from business and economic leaders for a ‘stakeholder economy’ that benefits more than our bottom lines.”