The fact that private equity players have failed to recruit female managers is nothing new. Nevertheless, investors are now vehemently calling for more women in the industry. There is hardly any other sector in which there are as few women as in private equity funds. At the same time, the backers of these funds, which are subject to EU regulations to promote the proportion of women, are vigorously insisting on a balanced gender distribution.
The lack of women in management positions such as investment and portfolio management strengthens their negotiating position. This increases their costs due to growing demand. Private equity firms need to rethink their male-dominant image. They should create more balanced offers for parents to combine family and career.
Flexibility as the key to change
The challenges of the private equity business are legendary – all-nighters, a 100-hour week and a constant workload that doesn’t let up even at weekends.
After years of working at a high pace, female professionals face challenges after the birth of their first child at the latest. They have to plan childcare that is compatible with their working hours. In an ideal world, every private equity company would have its own childcare centre. However, this is a rarity.
Most companies in this sector are either too small or they are not sensitised enough to company childcare. This results in a missed opportunity.
It’s time for change. Companies need to develop models that support parents and enable flexible career planning. A rethink has already begun, albeit not entirely voluntarily. This has been demonstrated by the increasing implementation of working from home over the last three years. Productive work can also be done from home.
A look to Scandinavia for inspiration
In the coming years, it will be crucial to inspire more women to pursue a career in private equity and to promote them to senior and partner positions in the long term, even with children. Traditionally, there has been a certain reluctance in the industry towards female managers. However, experience shows that a higher proportion of women not only makes the team more diverse and therefore often more successful, but also makes it easier to recruit new female talent. Qualified female candidates are available, but it is difficult for many private equity players to find them.
One possible solution is to look beyond traditional recruitment methods and search for talent outside the usual circles. Scandinavia, particularly Scandinavian funds in Germany, provides inspiring examples of this. Companies there are more willing to hire women and in greater numbers, often including those who do not necessarily come from the traditional private equity environment, but who nevertheless have the necessary skills and assertiveness for the intensive industry. This openness, far removed from rigid guidelines, could be the key to increasing the presence of women in private equity funds.
Female recruiting: broaden the search
The pressure on companies is constantly increasing as investors rightly insist on a higher proportion of women. Companies that remain sluggish and neglect legal regulations not only risk a loss of image, but also difficulties in fundraising. Private equity companies should therefore quickly and boldly broaden their search for female specialists. The example of Scandinavia shows that an openness to talent from outside the traditional environment, combined with a focus on qualifications and entrepreneurial spirit, can bear fruit. Even if companies are still hesitant at present, there will be no way around these new talent pools in the future.
About Pia Sickmüller
Pia Sickmüller has been active in executive search for over 5 years and has worked for various renowned and globally active consultancies. She started her career filling key and leadership positions in asset management, institutional investors and other types of financial institutions. She has been with HAGER Executive Consulting since 2023, where she primarily fills management positions at private equity funds, venture capital companies and (PM) asset managers. She is convinced that without new female talent in key positions, the private equity industry will miss out on opportunities
Source reference: The original work can be found here: https://www.moneycab.com/finanz/versaeumnisse-im-female-leadership-private-equity-in-der-pflicht/
