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Bailey McCann, Opalesque New York: Despite a growing backlash against diversity initiatives, new data from Fairview Capital shows that the number of women and minority-owned private equity and venture capital firms expanded significantly in 2023.
The number of women and minority-owned private equity and venture capital firms reached 907 in 2023, up from 760 firms at the close of 2022. This signifies a significant growth trajectory, as the universe of diverse firms has expanded nine fold since 2014, when Fairview initially started reporting this data. In 2023, a record 230 first-time woman and minority-owned firms were in the market raising capital, representing 55% of the 417 woman and minority-owned firms in the market.
The primary opportunity for investment with women and minority owned firms is in venture capital. 88% of diverse managers were raising an early stage investment fund, 7% were raising a multi-stage fund, and 5% were raising a mid-stage fund. Barriers to entry for diverse managers are higher in traditional buyout or growth equity, keeping the growth of those funds relatively low.
"We find that the increase in diverse talent is continuing to drive consistent growth in the community of woman and minority-owned firms, despite significant underrepresentation in the market overall," said Aakar Vachhani, Managing Partner at Fairview Capital.
The number of woman-owned firms has been a particularly strong area of growth. It was a record year for wome...................... To view our full article Click here
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