Diverse-owned private equity firms continue to outperform their benchmarks, according to Examining the Returns 2019: The Financial Returns of Diverse Private Equity Firms, a study released today by the National Association of Investment Companies (NAIC). Despite delivering consistent returns, diverse- and women-owned firms collectively manage only 1.3 percent of the investment industry’s $69 trillion in assets under management.
In this report, the Knight Foundation along with Professor Josh Lerner (Harvard Business School) and Bella Private Markets update our previous study using revised data and enhanced methodology. The most significant change being the availability of new ownership diversity data on PE and real estate funds, allowing us to study real estate performance for the first time.
This report analyzes how racial bias affects capital allocators’ decision-making when evaluating asset managers. Surveys were conducted to test whether capital allocators had biases that impacted their evaluations of firms led by people of color, and if so, how these biases manifest. The results suggest that funds led by people of color may face the most barriers to advancement.
“Why don’t we have more investment manager diversity?” That simple question from the CEO of a long-standing client served as a catalyst for a change in perspective for Colonial Consulting. Differentiated Talent chronicles that defining moment, how it challenged the firm to re-think its business practices and following that period of self-analysis, to enact change for the better.
Larry Manson, Jim Casselberry and David Kushner of NexTier examine the current state of institutional searches for emerging asset managers and prescribe best practices for identifying and utilizing the most talented emerging managers.
This study is an in-depth review of the investment performance of diverse-owned private equity firms from 1995-2015. Published with assistance from KPMG, an independent accounting firm that analyzed and compiled the performance data to ensure its integrity and accuracy, and AON Hewitt, who wrote the report, it serves as a resource for institutional investors, industry professionals and the media.
The Limited Partner Perspective: The Opportunity in Diverse Emerging Managers is a study that analyzes the experiences of limited partners (LPs) who invest in private equity funds managed by diverse general partners and why they invest in these funds.
This Rothstein Kass Institute study looks at how diversity efforts – and outperformance by many of the investment teams – are leading to increased allocations to funds managed by women as well as greater female representation within the alternative investment industry.
Some of the practical, performance- and risk-related questions surrounding women and diverse-managed hedge funds are addressed in this report. In doing so, the authors constructed a women and minority owned hedge fund index, as well as surveyed and interviewed more than 25 managers and investors.
This case study examines how the Silicon Valley Community Foundation approached the issue of increasing investment manager diversity with its investment advisor. These first-person accounts from the foundation’s CEO and the investment advisor provide candid assessments of how they addressed the issue of increasing investment manager diversity.
This white paper provides an overview of best practices from some of the nation’s leading pension funds that have pioneered private equity investment with emerging managers. It analyzes and compares a few of the more successful emerging manager programs in order to identify those factors that appear critical to their success.
This study was designed to gain a thorough understanding of how an Emerging Manager Program (“EMP”) can work best and identify the ways that stakeholders can cultivate that success. We began by contacting 22 pension funds to invite their Board members and/or Investment Staff to collaborate with us on this project by allowing themselves to be interviewed about their EMP experiences.
NAIC's performance survey, Recognizing The Results, compared the audited financial returns of NAIC Firms against the broader private equity market using four (4) industry benchmarks for the period 1998 - 2011. KPMG was engaged to collect and compile the performance data which was then analyzed by a working group of fund of funds investors.