Sat, Feb 22, 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. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  2. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners (DonSteinbrugge@agecroftpartners.com): Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  3. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  4. Bruce Berkowitz is back!, Coatue's new quant fund lost money in the fourth quarter[more]

    Bruce Berkowitz is back! From Institutional Investor: Famed value investor Bruce Berkowitz has hit hard times over the past decade, with big bets on losers like Eddie Lampert's Sears Holdings. In fact, over the past 10 years, his Fairholme Fund's annualized return is only 4.89 percent -

  5. Are all ESG Indexes as green as you want them to be?[more]

    From Beyond Investing: When Laurence Fink, chief executive of BlackRock, with nearly US$7 trillion under management, vows to put sustainability at the core of the firm's new investment approach, markets and investors sit up and liste