Investors pressure alternative investments funds to improve gender diversity

By Pete Settles

KPMG just released its sixth Women in Alternative Investments report: The Call to Act, and it reveals a number of key improvements being made across the industry regarding gender diversity, but also sheds light on a gap between men and women regarding how much progress they believe is being made.

Some of the key findings from this year’s report include:

Investors are pressuring funds to improve gender diversity, with 37 percent of investors polled requiring disclosure of diversity statistics for all potential investments (up from 16 percent last year)
42 percent of investors said they will require firms in their investment portfolios to improve diversity over the next year, up from 11 percent last year.
Funds are taking meaningful steps to improve gender diversity by creating more diverse candidate pools, improving their retention and advancement efforts, and increasing opportunities for advancement for women through formal mentorship and sponsorship programs.

But there is much work left to do to continue driving gender diversity within Alternative Investments.

We are at a critical time for women in business, and even in the highly male-dominated Alternative Investments industry we’re starting to experience progress.

Kelly Rau

For the first time, men were also polled in this report and we found a significant difference in how both genders see progress, with 65 percent of men agreeing their sector is addressing the issues, while only 45 percent of women agree.

And 48 percent of women polled said their firm is not doing enough to recruit, retain or advance women, while only 30 percent of men agreed with that statement.

In addition, only 20 percent of women polled say they have access to a formal sponsorship/mentoring programs.

"We are at a critical time for women in business, and even in the highly male-dominated Alternative Investments industry we’re starting to experience progress,” said Kelly Rau, co-author and Audit partner for KPMG LLP’s Financial Services practice.

“Understanding the reasons why women are leaving is important to driving change and improvement in retention,” said Camille Asaro, Co-author and Audit partner, KPMG LLP’s Financial Services practice.

For more information or to arrange an intervew, please contact Pete Settles.

Co-authors Kelly Rau, Jim Suglia and Camille Asaro discuss the report.