BCG and Cambridge Associates research

Research from BCG and Cambridge Associates highlights the importance of diversity in private equity and venture capital. It shows that diverse-owned firms, in terms of gender, race, and ethnicity, are increasingly leading deal flows, with their deals growing at a rate nearly double that of nondiverse firms. These diverse firms provide unique investment opportunities and focus more on early-stage and overlooked companies, offering valuable diversification.

Key Insights:

• Diverse Firms on the Rise: From 2018 to 2022, deals led by diverse private equity and venture capital firms grew at 25% annually, nearly double the rate of nondiverse firms.
• Unique Deal Flow: Approximately 30% of transactions completed exclusively by diverse-owned firms are not accessed by nondiverse firms, representing 7% of all deals.
• Early-Stage Focus: Diverse teams are more likely to invest in early-stage deals and overlooked companies, performing as well as their nondiverse peers despite higher inherent risks.

For a deeper look into these findings, read the full article here.

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