Moving Toward Gender Balance In Private Equity And Venture Capital

Private equity and venture capital funds with gender balanced senior investment teams generated as much as 20 percent higher returns than funds with predominantly male or female teams

Oliver Wyman collaborated with IFC and investment firm RockCreek to research gender balance—defined as leadership teams with at least 30 percent of men and women—in private equity and venture capital in emerging markets. This research analyzed gender balance in the firms that allocate capital and the portfolio companies that receive investments, the relationship between gender balance and returns, and the steps investors can take to move toward gender balance.

We found that women are underrepresented in leadership roles in both private equity and venture capital firms and portfolio companies. Only 15 percent of firms’ and 20% of portfolio companies’ leadership teams are gender balanced; however, gender balance was found to be correlated with greater performance. Through over 50 interviews and 500 survey responses, we outline over 25 steps investors can take to move toward gender balance in both investment teams and portfolio companies. These initiatives are supported by 12 case studies of leading private equity and venture capital organizations that showcase best practices.