Less than 1.3% of the $69 trillion of global financial assets under management is managed by women and people of color despite equal or better performance and the statistics have not changed in a decade.
(source: Stanford University, Illumen Capital)
Women represent less than 8% of senior private credit investors.
(source: Preqin)
Better Returns.
A great deal of research in recent years has highlighted the positive impact diversity can have on investment outcomes.
Gender balanced teams have a 20% higher net internal rate of return. (source: International Finance Corporation and Oliver Wyman)
McKinsey found corporations that embrace gender diversity on their executive teams were more competitive, 21% more likely to experience above average profitability and had a 27% likelihood of outperforming peers on longer-term value. (source: McKinsey)
Gender diverse investment committees outperform all-male committees in alpha, TVPI and IRR by 7%, 0.52% and 12% (source: HEC Paris Business School and MVision Private Equity Advisors)
Better Risk Management.
Greater diversity improves decision making and risk management.
Studies have shown that diverse teams process information more carefully, are more likely to remain objective and consistently reexamine facts, encourage greater scrutiny of the actions of others and become more aware of entrenched ways of thinking that may otherwise lead to errors in the decision making process. (source: Harvard Business Review)
Companies with diverse and inclusive teams come to better business decisions up to 87 percent of the time. (source: Cloverpop, a company that develops cloud-based decision-making software based on behavioral science)
Better Ability to Recruit and Retain.
Employees, particularly younger generations, prefer to work in diverse environments.
Nearly 80% workers in a 2021 CNBC/SurveyMonkey Workforce Survey say they want to work for a company that values DEI. (source: EY 2021)
Diversity has been shown to correlate with superior employee engagement. (source: "The role of diversity practices and inclusion in promoting trust and employee engagement" Journal of Applied Social Psychology, Vol. 45, Issue 1)
Better Ability to Meet Investor Needs.
Investors are increasingly interested in incorporating gender equality into their investment decisions.
Three-quarters of public pension fund asset owners say that investment teams with sufficient women representation significantly improves the performance of their investments. (source: Morgan Stanley)
63% of US individual investors and 67% of global asset owners identify gender diversity as an area of interest in allocating capital across their investment portfolios. (source: Morgan Stanley Institute for Sustainable Investing)
PEI’s Perspectives 2022 study revealed 20% of limited partners (LPs), or investors, refused a fund investment opportunity based on a lack of commitment to D&I at the level of a general partner (GP). (source: Private Equity International)
Women in Private Credit is committed to advancing diversity in private credit and alternatives more broadly.
Please stay tuned for more information. Email admin@womeninprivatecredit.org to be added to our distribution for access to market research on trends in private credit, networking opportunities and updates on advancement in diversity.