Clayton, Dubilier & Rice’s Post

It's #𝗠𝗲𝗿𝗴𝗲𝗿𝘀𝗮𝗻𝗱𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀 𝗠𝗼𝗻𝗱𝗮𝘆 and today the question is 𝗪𝗵𝘆 𝗜𝘀𝗻'𝘁 𝗧𝗵𝗲𝗶𝗿 𝗠𝗼𝗿𝗲 #𝗗𝗘𝗜 𝗶𝗻 #𝗣𝗿𝗶𝘃𝗮𝘁𝗲𝗘𝗾𝘂𝗶𝘁𝘆?... Before I share some stats shared by the United States Private Equity Council, McKinsey, and Harvard Business Review, I did a little "mother-in-law research" and randomly looked up a few small to mid-cap PE firm websites. When I looked at the teams, the DEI trends are quite clear: 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝙀𝙦𝙪𝙞𝙩𝙮 𝙞𝙨 𝙥𝙧𝙞𝙢𝙖𝙧𝙞𝙡𝙮 𝙖 𝙬𝙝𝙞𝙩𝙚, 𝙢𝙖𝙡𝙚- 𝙙𝙤𝙢𝙞𝙣𝙖𝙩𝙚𝙙 𝙖𝙧𝙚𝙣𝙖. A few changes are taking place: 🟢There is a growing bench of younger women in entry level associate roles. 🟢There are a few managerial roles and a sprinkling of senior roles made up of men of color, but Hispanic and black leaders were almost non-existent except in minority-owned firms. 🟢 I noticed a high percentage of the female leadership roles in PE are Human Capital-related as opposed to on the deal making/operating partner track. I spoke to a friend of mine who founded an investment bank over 30 years ago. A couple of years ago, he realized (what took him so long, I have no idea...) that their firm had zero women partners. He went on a hunt for experienced female partners. It took him 18 months to find one viable candidate! Why is M&A/Private Equity so white male dominated? The US PE Council states that women in private equity comprise only 25 percent of all operating positions. A higher percentage, 52 percent of roles are held by women at the associate level but they rarely advance to senior leadership levels. Women reported finding the culture in Private Equity to be challenging to break into and gain respect as they attempted to climb the leadership ladder. Researchers note that minority-owned funds are in short supply. They are more likely to finance people like themselves but because minority-owned funds are so few in number, relatively few minority businesses get funded. Black and Hispanic-owned funds raised only 2.4 percent of total private capital according to studies. Higher expectations for fundraising performance, was almost three times higher for minority-owned groups. However, the statistics show that minority fund exits are just as successful as majority owned funds. I concluded the following by looking under the PE/DEI hood: 📌People in PE do business with people like themselves and are slow to change this approach. 📌Diversity at the senior levels remains low, and doesn't look like it will change anytime soon. 📌PE firms don't have programs to encourage female partnership. Since 2020, #DEI is taking a back seat once again in PE and that is a sad state of affairs for business.

In light of Women's History Month, here is Fairview’s Senior Analyst, Taylor Martin, and her perspective on the data within the landscape for Woman and Minority-owned firms: "In 2023, there was an 11% increase in women-led venture capital and private equity firms in the market and a 16% increase in woman-led firms raising a subsequent fund. Despite remaining significantly underrepresented, we are encouraged by the positive, steady growth of woman-led firms in the industry and particularly by the progression in subsequent funds.” See link to the report here: https://lnkd.in/ewe6bMh8

This year has been monumental for All Raise, and our CEO Paige Hendrix Buckner is eager to share our collective progress! Here are some takeaways: 1️⃣ We’re trending in the right direction and outpacing the expected time to achieve our goals. The proportion of women decision-makers in VC firms has nearly doubled to 17.4%! (For firms with $50M AUM or greater) 2️⃣ Diversity leads to triumph! Research confirms that diverse teams yield better returns. As noted by Harvard Business Review, venture capital firms that increased their proportion of female partner hires by 10% saw, on average, a 1.5% spike in overall fund returns each year and had 9.7% more profitable exits. 3️⃣ Male allyship is essential. Our community survey reveals that 98% of respondents acknowledge the positive impact of male allies in hiring, funding, and mentorship endeavors. As a collective, we can rewire the industry from the inside. We've made substantial progress, but we still have much work ahead. We are deeply grateful to our team, volunteers, and Board members for their steadfast commitment. For full details, read our comprehensive 2023 Annual Report: https://lnkd.in/gbbZabdr #Investment #VentureCapital #GPs #LPs #EmergingManagers Kirsten Green Ita Ekpoudom Madeline Darcy Caitlin Herling Byron Deeter J.C. Lopez Anna Barber Elise King Erin Harkless Moore, CFA Candice Morgan Karen Toste

As Women’s History Month comes to an end, we know that women’s accomplishments should be showcased year round. Each week, we’ll be spotlighting remarkable women who have made significant strides in finance. Their exceptional leadership, expertise, and dedication have not only propelled their careers but have also inspired countless women in the industry. Jean Hynes, CEO, Wellington ($1T+ AUM): Jean is Wellington's first female CEO. Janet Rilling, Senior Portfolio Manager and Head of Plus Fixed Income, Allspring Global Investments ($465B+ AUM): Over her tenure through January 2024, the Allspring Core Plus Bond’s cheapest share class outpaced 90% of peers on a total-return basis. Hilda Applbaum, Portfolio Manager, Capital Group ($2.6T AUM): Silver-rated Income Fund of America has outpaced 69% of peers on Applbaum’s watch through the end of January 2024. Let's continue to celebrate and support women leaders like Jean, Janet, and Hilda as they pave the way for a more diverse and inclusive future in fund management. Read more about these female fund managers and other high achieving women here: https://lnkd.in/g3aguqpX #GenderDiversity #WomenInFinance #DiversityAndInclusion #GenderEquality #WomenLeaders #InclusiveLeadership #EmpowerWomen #GenderBalance #WomenInBusiness #EqualOpportunity #FinanceExcellence

Looking for some good news? Here's some! All Raise reports that the proportion of women decision-makers in VC firms has nearly doubled in the past 8 years. For an industry where decision making roles are few and far between, that's pretty great. Check out other insights from All Raise below 👇

Absolutely impressed with All Raise's data-rich annual report. The insights into the state of parity in venture and the intimate look at what women and nonbinary VCs need to thrive are both enlightening and encouraging. The industry is making progress, but there's still work to be done! Check out their annual report- https://lnkd.in/gbbZabdr #Investment #VentureCapital #WomeninVenture #WomeninVC #GPs #LPs #EmergingManagers

Paige Hendrix Buckner and the All Raise team push the ecosystem in the best ways to bring community and capital together. For some numbers that tell a story about the VC industry since 2018, read the comprehensive 2023 Annual Report: https://lnkd.in/gbbZabdr ! Spoiler Alert: Some things changed like proportion of women decision-makers in VC firms has nearly doubled to 17.4%! (For firms with $50M AUM or greater). This is great, and it's still not enough! On the other hand, some things stay the same as we know the VC % going to female founders is the same or worse. And, yet we just keep going! #Investment #VentureCapital #Womeninventure #GPs #LPs #EmergingManagers

🚨 We need more women investors PitchBook reports that "women receive less than 3% of all venture capital investment, and nearly three-quarters of US VC firms do not have a single female investing partner." California Business Journal reports "The likelihood of a woman-led company receiving investment escalates by 30% when a woman is part of the investment committee and by 50% if it is a woman VC making the decision." To promote more women investors, initiatives like mentorship programs, networking events, and encouraging women to pursue finance careers are crucial. By fostering a diverse and inclusive ecosystem, we can unlock more opportunities and change the way money moves. 📈 https://bit.ly/4b6itU7

Applications for Cohort 2 of Black Women Investors (BWI) are NOW OPEN! Black Women Investors (BWI) is dedicated to creating opportunities, providing resources, and fostering a supportive community for Black women aspiring to excel in venture capital and private equity. With less than 1% of senior roles in these fields held by Black women, BWI aims to empower members to thrive professionally through mentorship, skill development, and strategic partnerships. A recent study from the World Economic Forum noted an estimated $700 billion could be unlocked by financial institutions by better serving women as investors. Research also shows that women investors outperform men by 1.8 percentage points annually and are twice as likely to incorporate ESG (Environmental, Social, and Governance) factors into their investing activities. BWI is building a pipeline of diverse investors who will lead in shaping the future of finance. If you’re a Black woman in private equity or venture capital—whether you're at the beginning of your career or an experienced professional—seeking mentorship, skill development, or career growth, we encourage you to apply and join this exceptional network. 💡 Membership benefits include: Mentorship and skill development: Personalized guidance and tools to refine your skills and advance your career in venture capital and private equity. Strategic networking opportunities: Engage with a community of like-minded professionals dedicated to driving impact in the investment world. Access to educational resources: Gain valuable knowledge on the latest trends and best practices in venture capital and private equity. Community support: Collaborate with peers and mentors who share your commitment to breaking barriers and advancing in these fields. Together, we are closing the gap in investment roles and creating a diverse group of investors that reflects the broader global community. 🔗 Learn more and apply! Application: https://lnkd.in/ef5NazNn #BlackWomenInvestors #VentureCapital #PrivateEquity #Mentorship #SkillDevelopment #ApplicationsOpen #RepresentationMatters #EconomicEmpowerment #ESGInvesting

To all my female business contacts, if you are at a stage in your career where your experience could contribute to the success of other women in business, whilst learning and growing yourself, look up Lifted Ventures - they are an amazing group of Business Angels and the brain power in there is truly mind blowing! So it's a win-win-win! #businessangels #startupinvestments #womeninbusiness #entrepreneurship