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Minority-Owned Private-Equity Firms Beat Buyout Titans in Study
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Private-equity firms that are diverse or minority-owned achieved higher gains than the broader industry, according to a report today by the National Association of Investment Companies.
Funds managed by NAIC member firms, 79 percent of which are owned by minorities and 69 percent of which have women or minorities in at least half of the investment roles, had a median net internal rate of return of 15 percent from 1998 to 2011, compared with 3.7 percent for the U.S. private-equity industry, according to the report. The firms produced a median 1.5 times invested capital versus 1.1 for the industry, according to the study, which was managed by the audit and advisory company KPMG LLP.