NEWS AND INSIGHTS UPDATE:
A study by the National Association of Investment Companies (NAIC) found that the funds managed by its member firms (79% of which are owned by minorities and 69% of which have women or minorities in at least half of the investment roles) had a median net internal rate of return of 15% from 1998-2011. That’s significantly higher than the 3.7% rate of return for the U.S. private-equity industry during the same time period.
Devin Banerjee shares the following additional information from the NAIC report with Bloomberg:
“At nine of those 10 biggest private-equity firms industrywide, women account for an average 8.1% of managing directors and senior executives, the highest-ranking and best-paying jobs, according to data compiled by Bloomberg from the companies and their websites. The comparable figure for the country’s six biggest investment and commercial banks is 30%. Women make up 13% of the senior ranks at 10 of the largest traditional-asset managers.
“A report published in August by the Credit Suisse Research Institute found that companies with women on their boards rewarded shareholders with corporate performance and share-price returns that are more stable than those at comparable companies with all-male boards. Net income growth at companies with female board representation averaged 14% over the past six years, compared with 10% at those without a female director, according to the study.”
NAIC hopes that the report will serve as a call to action to investors and motivate them to do business with firms that embrace diversity.
Get the details: Minority-Owned Private-Equity Firms Beat Buyout Titans in Study via www.bloomberg.com
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Susan Gunelius
Susan Gunelius is the Founder and Editor-in-Chief of Women on Business. She is a 30-year veteran of the marketing field and has authored a dozen books about marketing, branding, and social media, including the highly popular Ultimate Guide to Email Marketing, 30-Minute Social Media Marketing, Content Marketing for Dummies, Blogging All-in-One for Dummies and Kick-ass Copywriting in 10 Easy Steps. Susan’s marketing-related content can be found on Entrepreneur.com, Forbes.com, MSNBC.com, BusinessWeek.com, and more. Susan is President & CEO of KeySplash Creative, Inc., a marketing communications company. She has worked in corporate marketing roles and through client relationships with AT&T, HSBC, Citibank, Intuit, The New York Times, Cox Communications, and many more large and small companies around the world. Susan also speaks about marketing, branding and social media at events around the world and is frequently interviewed by television, online, radio, and print media organizations about these topics. She holds an MBA in Management and Strategy and a Bachelor of Science degree in Marketing and is a Certified Professional Career Coach (CPCC).
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