Securing Partner Buy-In: How Apposite Elevated their DEI Initiatives

Apposite Capital is a private equity firm focused on healthcare investments, known for its commitment to adding value beyond capital. In line with its innovative approach, Apposite Capital recognised the importance of integrating Diversity, Equity, and Inclusion (DEI) across its operations and portfolio companies.

The challenge:

“While DEI has always been central to our firm culture, internal resources to drive initiatives has been a challenge as a small team. When we sat down to evaluate the business case for external support, it was clear it would be a worthwhile investment that will help us add greater structure to our DEI strategy and maximise our impact with evidence-based objectives tailored to our firm.” Lauren Edison, Investment Director at Apposite

The Apposite team is known for its ambition and leadership in their industry. They recognised the need to pioneer, rather than just follow, in operationalising their DEI (Diversity, Equity, and Inclusion) efforts. Their goal was to consistently track DEI metrics, review processes for bias, and develop a data-driven, scientifically-backed DEI strategy.

However, like many mid-market funds, the individuals leading DEI initiatives at Apposite also have demanding day-to-day responsibilities, such as investing and supporting the growth of portfolio companies.

Fair HQ provided the solution to this challenge by bridging the gap between the extensive time and resources needed to gather data and create a strategy, versus the limited time and resources available for executing that strategy. Fair HQ offered expertise and real-time data, enabling Apposite to implement an effective DEI strategy efficiently.

Although there was already support for DEI initiatives within the wider team, in order to approve an external budget, they sat down as a team to evaluate the business case.

Strategy: How Apposite Secured Strong Buy-In from Partners

1. Reiterating the Value of Strong DEI: The Apposite team began by presenting data and research illustrating how DEI contributes to better decision-making, greater innovation, and improved investment returns. This evidence helped underline the strategic importance of DEI initiatives.
2. Highlighting the Importance of Industry Benchmarks: Recognising that PE firms are keen to know how they compare with peers, Apposite showcased the ability to access over 100 benchmarks from relevant peers (AUM) and industry bodies through Fair HQ. This provided a clear picture of their standing in the industry.
3. Demonstrating Cost and Time Savings: The team analysed the current time and resources spent on DEI efforts alongside their primary responsibilities. They presented this alongside the resources needed to make significant progress, including the cost of hiring a consultant or part-time professional. This comparison helped illustrate the efficiency and value of partnering with an external expert.
4. Aligning with Business Goals: The DEI initiatives were carefully designed to align with Apposite’s long-term business objectives. The team emphasised how embracing diversity could enhance their operational excellence.
5. Inspire Portfolio Companies: The team emphasised that, like in many business areas, they also want to lead by example for their portfolio companies. The scalability of Fair HQ methodology and technology would enable them to transfer some of the learnings and frameworks to their portfolio companies.
6. Leveraging External Expertise: Apposite presented a customised plan developed with Fair HQ, outlining how they would implement DEI initiatives, measure progress, and integrate DEI at every level. Specific examples of other successful partnerships were shared to reinforce the credibility and effectiveness of the approach.

Outcomes:

Through these strategic actions, the Apposite team successfully secured strong buy-in from the whole team.

You can read more about our work with Private Equity funds here.

If you work in PE and want to explore how Fair HQ can elevate your ESG social KPIs, such as DEI, you can book a discovery call here.