Minorities and Women Under-Represented in Mergers & Acquisitions, Private Equity Fields

The low representation of minorities and women in the private equity and mergers/acquisitions field has detrimental effects on the economy as a whole. While more minority- and women-owned businesses are appearing each year, they still have not caught up. Your company may benefit from being a trend-setter in hiring and promoting a more diverse C suite.

Minority Representation

According to Black Enterprise, African Americans account for roughly 2 percent of the total investment banking workforce. With mostly white Americans in the financial fields, minority opinions and experiences are lost. More diverse insights could potentially lead to more effective financial management and attract more benefactors. Your company would be wise to consider diversifying its management and board along with its financial holdings.

Women in the Financial Fields

According to Morningstar, under 10 percent of mutual fund managers in the US are women. Men alone run 74 percent of total assets and run the majority of businesses. Only 2 percent of open-end mutual funds are run exclusively by women. Interestingly, according to Inc, having women on the boards of directors results in considerably fewer mergers and acquisitions over a given time frame. When a merger or acquisition is performed that involves women on the board, the operation tends to cost noticeably less.

The Detriment to Society

There are numerous regulations, accountability groups, and the public at large to satisfy when you run a large company. As such, the volume and types of diverse skills you need continue to grow. With a primarily white male set of viewpoints and skills, there will be some missed opportunities simply due to perspective.

Hope On the Horizon

In the above-referenced article, Inc observes that women now represent that nearly 17 percent of board members in major companies. Minority-owned and run businesses are also on the rise, though Russell Reynolds notes that white men are still occupying the vast majority of C-level and board positions.

Having women and minorities in company leadership is a successful move. The trend of white male dominance in the financial field is reversing, and this reversal should have positive results.

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