Diversity and inclusion are important aspects of any modern portfolio. Recent events and movements have provided much needed awareness across all industries, and this awakening is changing the way companies do business across the country. For this reason, we set out to find out if the M&A industry is changing by surveying our customers to determine if and how their firms are reframing their focus around diversity and inclusion.
The Highlights
88% of respondents felt that their industry is poorly represented with women and people of color, but only 52% said they cared about inclusion within the industry and were motivated to bring about change.
While 55% of respondents said that their firm did have portfolio companies with female founders, 57% said their firm didn't have portfolio companies owned by minorities. And, unfortunately, most investors, 76%, still aren't looking to invest with goals focused on racial or gender diversity.
But of the 33% who do have goals of diversity, goals included reporting on diversity, revamping diversity policies, and transforming executive and board representation. Furthermore, respondents expressed that the top benefits of investing in diversity were equal opportunity and possible untapped markets.
Diversity and inclusion have proven to increase financials, bring more diverse ideas to the table, and attract more diverse job candidates, but despite these benefits our survey shows that investors are still not directing their goals toward racial or gender diversity. While most respondents see the inequity in the industry, only about half are highly motivated to change, even in an industry being reshaped by complex New School deal flow tactics.
