DEI investment opportunities in private markets

We can help you integrate diversity, equity and inclusion (DEI) considerations into your investment portfolios. Our three-step framework helps you assess, evaluate and accelerate DEI considerations within your capital and commitments, and identify opportunities within private markets that are designed to deliver positive returns.

Characteristics of a diverse organization for DEI investing

There is no universal definition of a diverse organization or asset manager. However, based on our experience in this space, we believe a diverse organization should meet at least one of the below characteristics1:
≥33%

The firm is at least one third (33%) owned by women and/or diverse professionals.

≥50%

The investment committee comprises at least 50% women and/or diverse professionals.

≥50%

Portfolio managers comprise at least 50% women and/or diverse professionals.

When assessing or defining the criteria, we recommend including both ownership and key decision makers to support long term change in the industry. By assessing DEI investments in this way, we better support the broader growth of future diverse leaders and expand the investable universe for institutional portfolios. We can help you define your optimal approach using our three-step framework.

A three-step framework to help you define your DEI investing approach

  • Define the qualifications of a diverse asset manager.
  • Determine what is included in your definition of “diverse”.
  • Define the stage of manager you want your program to be invested in.

  • Assess DEI in the existing portfolio.
  • Conduct an investment policy review and updates.
  • Determine your DEI investment pipeline.
  • Create a curated calendar of the best ideas.

  • Underwrite DEI fund opportunities.
  • Execute on best ideas in DEI.

Assessing DEI investment opportunities in private markets

There are many variables to consider when assessing DEI opportunities: the definition of diverse to your organization, how you want DEI to be included in your portfolio (that is, as a separate program or integrated into your current portfolio), policies and investment guidelines, and an investment pipeline and manager universe.

There are a number of qualifications and parameters to assess when incorporating DEI into your portfolio. A few of the most crucial are determining the qualifications of a diverse investment for your organization and identifying what stage of manager to include.

We define managers based on three stages: 1. those who are "emerging", or raising their first or second funds, 2. those who are "growing", or raising their third or fourth funds, or those who are "established", or raising their fifth funds and beyond.

With hundreds of diverse asset managers in the market today, finding the ones that meet your goals can be complex. Our rigorous asset manager research and due diligence process seeks to identify those that we believe can outperform.

Being agile requires access to robust research, advice and solutions that can help you achieve your goals, in-line with your unique governance model and investment objectives.

We have specialists around the world who source and vet opportunities, building a robust pipeline of diverse managers which allows you to move quickly and capture opportunities when they arise.

You need broad knowledge and strong manager relationships to be able to identify quality managers focused on the areas of the market most important to you and capable of furthering your DEI goals.

We help match investment opportunities to organizations’ goals. This includes funds focused on certain sectors or investing in diverse entrepreneurs.

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