Thu, Nov 21, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Gender diverse private equity investment committees significantly outperform all-male teams, study shows

Monday, June 24, 2019

Bailey McCann, Opalesque New York:

New research on private equity shows that having gender diverse investment committees is not only a blindingly obvious thing we need to do in 2019, it's also good for business. The report, entitled, "Impact of Gender Diversity on Performance of Private Equity Investments" from HEC Paris Professor Oliver Gottschalg and MVision, shows that private equity firms that have gender diverse investment committees not only outperform they also have a significantly lower number of failed deals than all-male teams.

The study is the first of its kind examining performance on a deal by deal basis.

Gottschalg analyzed nearly 2,500 completed private equity transactions in North American and Europe for gender breakdown and overall deal performance. According to Gottschalg, the number of women-led deals is under 15 percent. What's notable is that when women are on the deal team, those transactions generate 7 percent more alpha, a 12 percent higher IRR and .52x more total value to paid-in multiple. Gender diverse investment committees also had a failed deal rate that was 8 percent lower than all-male teams.

In the study, an investment committee was considered gender diverse if it had at least one woman on the team.

"What we see from the findings is that in real hard dollar performance terms having women on the committee is significant," Gottschalg said in an interview with Opalesque. "The data also confirms other research already ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. HarbourVest raises $3bn for Co-Investment Fund V[more]

    Laxman Pai, Opalesque Asia: Boston-based HarbourVest Partners closed its latest private equity fund above the fundraising target - the $3 billion HarbourVest Partners Co-Investment Fund V was oversubscribed and above its $2.5 billion target. The fund's strategy is to create a global, diversif

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption