By Alan Hughes of the National Association of Investment Companies
As America’s population continues to become more diverse, the number of careers and economic opportunities in which members of these communities were historically shut out has gradually declined. In the corporate arena, management, the C-Suite and boardrooms are progressively looking less homogenous after painstaking work by trailblazers and others not afraid of the repercussions that come from demanding change. In the National Football League, the Rooney Rule led to increased hiring of
African American coaches. However, the financial services industry remains one of the areas in which diversity has been slower to take hold.
Assets under management at diverse-owned private equity funds are growing at a slower pace than the general market, and there remains a vast disparity between the number of pension plans that invest with funds managed by diverse firms and those that do not. And it is not due to a lack of performance. In fact, Recognizing the Results, a report by KPMG that measured private equity performance from 1998-2011, showed that NAIC members (all of which are diverse firms) produced superior returns over a sustained period when compared with the general private equity industry.
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