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Carlyle announces ESG-linked credit facility in Europe at €2.3 billion tied to advancing board diversity and other ESG targets

Global investment firm Carlyle today announced it has secured a €2.3 billion ESG-linked credit facility for its European private equity and real estate platform, to support the firm’s 30% board diversity target, and to address climate change and achieve better ESG outcomes through training. The new facility represents the next step in Carlyle’s ongoing commitment in Europe to drive further positive ESG change.

Earlier this year, Carlyle secured the largest ESG-linked private equity credit facility in the US for $4.1 billion which was the industry’s first facility to focus exclusively on advancing board diversity. The European facility builds on this example and reaffirms Carlyle’s commitment to working alongside its portfolio companies to achieve its 30% board diversity goal, with near-term step-up targets.

Carlyle recognises that board diversity contributes to more deliberative decision-making processes and more effective governance. The firm’s own research has shown that the average earnings growth of Carlyle portfolio companies with two or more diverse board members is approximately 12% greater per year than companies that lack diversity.

Kewsong Lee, CEO at Carlyle, said: ‘For many years Carlyle has been driving significant progress on board diversity in our portfolio companies on a global basis, recognising the correlation with strong financial decisions and performance. This European ESG-linked credit facility closely follows that of our Americas private equity platform, and together represent a significant moment in Carlyle’s strategy to reinforce our commitment to achieving greater diverse board-level representation.’

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