Women in PE: Change on the agenda

The discussion on gender diversity and cultural inclusion in private equity has evolved in the last couple of years. Most GPs now understand that having diverse teams – by gender and race – leads to better investment decisions and, as a result, superior returns. 

While the larger firms continue to lead in this aspect, smaller players are embracing the concept as well. Diversity is no longer a box-check exercise but a genuine business imperative that underpins the long-term growth of these partnerships. At the same time, given the general challenges around recruitment, managing and retaining talent while striving for diversity isn’t easy.

In Asia, diversity and inclusion (D&I) is becoming more ingrained, with dedicated committees established, more institutionalized processes, and an overall increase in awareness. AVCJ has a passion for this issue and we will continue to play our role in pushing the discussion forward. 

Our first formal attempt came with the launch of women in private equity panels as an offshoot of our flagship Hong Kong forum. These sessions shed light on key considerations for female professionals in the industry, ranging from cultural pressures to the difficulties juggling family and work commitments to the premature curtailment of promising careers as workplaces fail to adapt to changing priorities.

It is crucial that PE firms focus not only on getting women through the door, but also on putting in place systems to support female employees as they rise through the ranks, minimizing hiring biases, and providing flexible working solutions. Two groups of people need to lead the charge if change is to happen: senior partners at private equity firms and LPs. 

Establishing a strong and inclusive corporate culture is an important part of this process. While many firms may establish D&I networks and set hiring and retention goals, this must be viewed not merely as an HR or PR exercise, but as part of a tangible and practical support system. Senior partners also need to be mindful of generational divides that may prevent honest feedback and be open to reverse mentoring in areas where they lack experience. 

Meanwhile, most LPs are making the right noises. Diversity is increasingly cited as a priority and it is covered in due diligence. However, they should also be more proactive when it comes to influencing GP behavior – not merely noting whether a team is diverse and listening to boilerplate statements about a commitment to diversity but asking managers to show evidence of this commitment in action.

That’s really some food for thought. We (and 25-plus senior professionals) will explore these issues, as well as many others, in greater depth at the AVCJ Women in Asian Private Equity Forum on 10 December in Hong Kong. 

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