Tue, Sep 29, 2020
A A A
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. Investing: Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says, Pandora tops world's best-performing market as hedge funds exit, What Bill Ackman is investing in now[more]

    Tech stocks aren't in a bubble, but investors should be pickier, Credit Suisse says From Business Insider: Credit Suisse on Thursday trimmed its overweight rating for tech stocks, recommending investors be more selective with their sector picks. Crowding in tech giants and the stocks&#

  2. Investing: Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan, Here's what investors with $3.4tn are buying during covid, An energy trader seeks profit from batteries in European markets, Hedge fund ARCM to sell $200m of Premier Oil debt[more]

    Third Point buys stakes in Facebook, Alibaba in Q2, exits Sony, Allergan Third Point LLC acquired new stakes in Facebook Inc. and Chinese e-commerce companies Alibaba Group Holding Ltd. and JD.com Inc. during the second quarter of 2020 as it divested positions in Sony Corp. and drugmaker

  3. PE/VC: Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise, Aberdeen's Bonaccord teams up with CAZ to buy stakes in private markets managers, The role of private equity in economic recovery from Covid-19[more]

    Investors have bet big that you can get private equity returns in the public markets. A new study says otherwise From Institutional Investor: New research suggests private-equity-owned firms respond differently to financial distress - and that the resulting performance "cannot be replicat

  4. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  5. Franklin Templeton creates new unit with QS Investors[more]

    Laxman Pai, Opalesque Asia: Franklin Templeton will combine recently acquired QS Investors, a Legg Mason subsidiary, with Franklin Templeton Multiasset Solutions (FTMAS) business into a single consolidated unit. Effective Oct. 1, the combined business, called Franklin Templeton Investment Sol