a diversity mindset into
leads to higher portfolio returns
At least no performance difference, evidence of higher business performance and higher fund returns.
Higher Investment Return
Lower competition offers lower bid-up deal prices, and significant open opportunities for investment.
The risk of not
With diversity on the agenda for institutional and individual investors, questions are currently asked on the diversity of the investor team. The rapid introduction of the questions, has left many firms with a challenge to catch up.
The next step will be the diversity of investment portfolio, for performance gains, for the avoidance of group think in management, alongside diversification of portfolio risk and reputational risk.
Drivers of future growth
A diverse leadership team is a significant indicator for current, and future prospects, of financial business performance.
Diverse leadership teams, in study after study,
correlate with higher financial company performance.
Private equity portfolio received a financial boost from diverse led investments
Calvert Impact Capital
’Delivering through Diversity, McKinsey 2018
In the VC world, female led businesses show
returns of 20% more revenue
with 50% less money invested
Yet, male entrepreneurs 86% more likely to be funded
For every $1 in funding,
female entrepreneurs generate $0.78 in revenue
compared to $0.31 by male entrepreneurs
BCG & MassChallenge, 2018
Causation or Correlation
The wealth of evidence offers up a causation or correlation debate,
or can prompt us to seek further granularity on sector and size,
yet the overriding rational remains.
Performance and returns provided by diverse and female led
businesses are not reflected in current investment levels. Offering an untapped opportunity for investors.
REFLECT & UNDERSTAND
THE TALENT POOL THEY DRAW FROM
& THE CUSTOMERS THEY SERVE
The future of work
flexibility, purpose, collaboration,
Diverse leadership teams see higher employee satisfaction and attract top talent
Ann Pickering, Chief of Staff,
Under 30s ask for flexibility, trust and work mobility, before salary.
60% of graduates are women
in the UK and globally
for the last 30 years
34% of millennials have left a job because it wasn't flexible
CONSUMER AND BUSINESS CUSTOMERS ARE INCREASINGLY DIVERSE
Businesses that expect to keep up with their fast-changing customer demands,
require leadership teams with the diversity to match the external environment.
65% of discretionary spend decisions
made by women
75% by 2028
An under-estimation of the market that women represent,
has led to an under-investment in
businesses with products and services aimed at the female market.
Providing an investment opportunity for those who do invest.
Opportunities for the taking
Offers an early detection for ovarian cancer.
Originally dismissed by investors as 'niche' and 'a women's issue'.
Exit value $275m