Apollo: Less than 100 Black executives in private equity

It’s widely understood that the private equity industry lacks diversity. What’s not so well known is by just how much.

Apollo Global Management found that among 18,000 potential hires across the U.S., there were only about 95 Black professionals at the principal or director level, said Jonathan Simon, head of leadership development and diversity. Across all levels, the number was about 250, the firm said, citing data from a third party hired to analyze industry progress.

“It just shows that there’s work to do more broadly in the industry,” Mr. Simon, who joined in August, said in an interview. “It’s an issue of how do we create a more diverse ecosystem — from entry-level positions for young junior-level associates to controlling for attrition. So we’re doubling down on our efforts to build a more diverse pipeline.”

It’s a stark reality for an industry hustling to make change. Apollo, like peers including KKR & Co., Carlyle Group Inc. and Blackstone Group Inc., has worked to boost women and people of color on the boards of the companies they own. But its own top ranks remain mostly white and male, with only one woman and one person of color in its 14-person management committee.

Still, Apollo is making progress in recruiting. Its year-to-date hires through the third quarter were 65% women and people of color, compared with 52% in 2019, Mr. Simon said.

In newly released figures, Apollo said it has achieved an internal goal of having 30% of board members at its North American portfolio companies be part of an underrepresented group. Worldwide, the number is 27%, or 63 diverse board members out of 231 director seats controlled.

“It just shows that there’s work to do more broadly in the industry.”

— Jonathan Simon, Apollo Global Management

Thirty-five were added this year.

The push stems from goals set by Matt Nord and David Sambur after they were named to take responsibility of the private equity business in late 2019.

“Our portfolio companies are coming to us, looking at how to approach hiring diverse teams, retaining diverse talent and fostering a culture of inclusion,” Mr. Sambur said in an interview. “But this isn’t a box-checking exercise — now that we’ve reached our goal, we aren’t declaring victory. We’re moving forward.”