•  
• Tweet
•  
•  
•        Print
•  
•        Email
•  
•         Track Keywords

The Preqin report also found that the proportion of female representation decreases significantly further up the corporate ladder-from 32.5% in junior positions, down to 25.2% in mid-level, and 13.6% at the senior level.

Those statistics decline even further in board membership. Across all seven asset classes that Preqin tracks, women only account for 10.3% of board membership among fund managers. This proportion increases slightly among investors, where women hold 14.2% of board positions.

The Preqin Women in Alternatives 2023 report shows which asset classes, institutions, and regions exhibit progress and which continue to lag when it comes to tackling gender inequality in the private markets.

Geographical breakdown - North America pulls ahead

According to Preqin data, as of January 2023, women account for less than one quarter (21.3%) of total employees working in alternatives globally. This is a marginal improvement from the 20.9% in January 2022. North America holds the highest proportion of women working in the industry at 22.3%, the only region with a percentage higher than the global average. Europe takes the second position at 20.9%, Asia stands at 20%, and Latin America, Middle East, and Africa trail behind averaging 18.8% between them.

North America also leads on the senior level, as 14.4% of senior positions are occupied by women, which is above the global average of 13.6%. The region maintains this lead in every asset class.

Institutional investors have better female representation than fund managers

On average, according to Preqin data, 24.4% of employees working at institutional investors are women, compared with 21% at fund managers. However, the percentage declines in higher managerial positions. Across all institutional investors, women occupy 34.5% of positions at the junior level, 26.6% of those at the mid-level, and 17.2% of senior positions.

The report shows that women are still under-represented in investment teams and portfolio management (20.2%). At the same time, women have a stronger presence in investor relations and marketing (38.1%).

Increased gender representation spotlights the hedge fund industry

The proportion of women across total employees in the alternatives industry spans from 22.3% in private equity, 23.8% in venture capital, to 26.5% in hedge funds.

As of January 2023, hedge funds have achieved the largest increase in gender diversity within alternatives, outpacing other asset classes over recent years. In 2019, hedge funds had one of the lowest proportions of female employees, at 19.3%. However, as of January 2023, there has been significant progress, with a 7.2% rise in the number of women working in the field. Preqin data shows that hedge funds lead among all alternative asset classes in having the highest proportion of women in senior roles, at 19.5%.

Natural resources and infrastructure have the second and third highest proportion of women at a senior level, at 16.4% and 16.1%, respectively.

Jaclyn Bouchard, EVP, Head of ESG Solutions and Corporate Responsibility, says: "Diverse perspectives are a competitive advantage - it is that simple. Innovative ideas can translate to inclusive solutions that help business models break out of a routine and adapt to the future, which can bring tremendous value. Strategy development, creative ideas, and new solutions are all strengthened by different perspectives. As an industry we have got to actively change the way we recruit, train, and retain women at all levels."

Key Preqin Women in Alternatives 2023 facts:

• 21.3%: Less than a quarter of employees working in the alternatives industry are women.

• 2065: The year the alternatives industry will reach gender balance given the current rate of progression, based on Preqin estimates.

• 22.3%: The highest regional proportion of women among the total alternative employees, held by North America.