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Opinion
Chris Hughes

Buyout Barons Need to Keep Diversity in the Spreadsheet

Private equity can’t afford to give up on recruiting from a broader talent pool or baking diversity into performance metrics.

No turning back.

No turning back.

Can the private equity industry’s diversity drive survive a market downturn? Non-financial initiatives that started in boom times can be vulnerable when economic conditions turn for the worse. This is one effort that needs to persist.

There’s been mounting pressure on this lucrative corner of the financial world, which has long been predominantly White and male, to tap a wider talent pool. Today’s tighter labor market only intensifies the need to act. Having diversity in the senior ranks helps attract talent at the entry level. The money is talking too, as scrutiny increases from ESG-minded limited partners who invest in buyouts and from shareholders who invest in the publicly traded private equity firms.