North American private equity and VC firms remain focused on DEI and ESG

A third say the shift away from DEI-focused policies in the U.S. will strengthen their global ESG and DEI commitment as a point of differentiation

North American mid-market private equity and venture capital firms remain focused on DEI and ESG both domestically and globally, despite the shift away from DEI-focused policies in the U.S. according to new research* from Ocorian, a leading U.S. and global asset services provider.

Almost half (45%) of U.S. and Canadian venture capital and mid-market private equity firms say this policy shift will only increase their focus on ESG and DEI as a differentiator in their domestic investment strategy over the next three years.

One in five (18%) say it will have no impact at all on their firm’s domestic investment strategy over the next three years. Almost a quarter (24%) say it will slightly reduce their ESG and DEI-aligned investments, and 13% say it will significantly reduce them.

The study with senior U.S. and Canadian executives at mid-market private equity and venture capital firms responsible for $335.25 billion assets under management found the move away from DEI-focused policies in the U.S. will not have a significant impact on their firm’s global investment strategy either. Almost half (47%) of those surveyed said it will have a “limited” impact as they treat each market separately.

More than a quarter (28%) of those surveyed say it will actually strengthen their global ESG and DEI commitment as a point of differentiation. Around 23% however say it will create tension between domestic and international priorities and just 2% say they expect the shift away from DEI-focused policies in the U.S. to deprioritize ESG and DEI globally.

Howard Nurtman, Head of U.S. Regulatory and Compliance at Ocorian, said: “Even as parts of the U.S. move away from DEI-focused policies, our research confirms what we continue to see across the wider investor community: DEI and ESG remain firmly embedded in how managers position themselves with LPs and how investors assess long-term value.

“Shareholders at the largest public companies are overwhelmingly rejecting anti-DEI proposals often by margins of 95% or more and mid-market private equity and venture capital firms are responding in kind**.

“But commitment alone is not enough. The SEC is scrutinizing whether ESG-labelled managers have the governance, documentation, and operational discipline to back those commitments. Firms that treat ESG as a marketing exercise rather than a regulated practice risk heightened examination and enforcement. The managers who will stand out are those who combine clear principles with rigorous implementation.”

* In May 2025 Ocorian commissioned independent research company PureProfile to interview 100 senior venture capital and mid-market private equity professionals in the U.S. and Canada working for firms with $335.25 billion assets under management

** https://www.esgtoday.com/more-than-99-of-walmart-netflix-shareholders-reject-anti-dei-proposals/

About Ocorian 

Ocorian is a global leader in fund services, corporate and trust services, capital markets, and regulatory and compliance support. 

Unlocking new value for its clients across jurisdictions and service lines is Ocorian’s priority; it manages over 20,000 structures on behalf of 9,000+ clients including financial institutions, large-scale international organisations, and high-net-worth individuals.

Ocorian provides fully compliant, tailored solutions that are individual to clients’ needs, no matter where in the world they hold financial interests, or however they are structured.

The group offers a full suite of corporate, fund and private client services across a network of offices spanning all the world’s financial hubs. Locations include Bermuda, BVI, Cayman, Denmark, Finland, Germany, Guernsey, Hong Kong, Ireland, Isle of Man, Jersey, Luxembourg, Mauritius, Netherlands, Norway, Singapore, Sweden, UAE, the UK, and the U.S.

To find out more about Ocorian and its services, including regulatory information, visit www.ocorian.com