![]() Would the outcome of buyouts or complex restructuring deals be more favorable if teams represented the diversity of society to a greater extent? The researchers at CCTPE have pondered over the issue, assembled data and crunched the numbers – and are now able to shed some light on these questions. The effect of a lack of diversity on the success of the sector is a pivotal question. ![]() By contrast, the figures for ethnic minorities make for very disillusioning reading, with only 2% hispanic and less than 1% black venture capital investors in the US, according to Gompers and Kovvali, 2018. Notwithstanding these low percentages, gender equality could be seen as the success story within the field of diversity. The percentage of women managing buyout businesses is still far from reaching the double digits. And only some 12% of senior positions in PE are held by females. Most notable among them are the positive effects of gender diversity.Īccording to the Preqin Impact Report 2020, the share of women in AI still hasn’t risen above the 20% threshold. In short: a broad line-up comes with numerous benefits. Recent research by EY and the Center for Corporate Transactions and Private Equity (CCTPE) at HHL Leipzig Graduate School of Management shows a number of positive effects that diverse PE lead partner teams have on the performance of PE portfolio firms. However, there is a serious incentive to improve these structures. To this day, they keep attracting peers, resulting in a very homogeneous workforce. Some three dozen years ago, these disciplines of the financial sector were founded by white men with an investment banking or consulting background. Even though alternative investment (AI) and PE are among the youngsters in the financial services field, they have always been staunchly male bastions. Schwetzler from the Center for Corporate Transactions and Private Equity at HHL Leipzig Graduate School of Management and EY have set out to investigate the impact of diverse lead partner teams on outperformance in PE.Īge doesn’t matter.
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