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Rothstein Kass, a professional services provider to the financial services industry, and the global women's network 85 Broads today announced the release of "Women in Alternative Investments – Industry Outlook and Trends," a new report focused on trends impacting core business functions at alternative investment firms. The research features the investment and operational insights gained through a third quarter survey of 189 executive-level women investing capital through hedge funds, private equity funds or venture capital funds. The report highlights the industry, capital-raising and investment insights of women fund managers and explores whether gender impacts core business functions such as capital-raising.
From the press release:
Rothstein Kass (www.rkco.com), a leading professional services provider to the financial services industry and the global women's network 85 Broads (www.85Broads.com), today announced the release of "Women in Alternative Investments – Industry Outlook and Trends," a new report focused on trends impacting core business functions at alternative investment firms. The research features the investment and operational insights gained through a third quarter survey of 189 executive-level women investing capital through hedge funds, private equity funds or venture capital funds. The report highlights the industry, capital-raising and investment insights of women fund managers and explores whether gender impacts core business functions such as capital-raising.
Findings indicate that while nearly 70 percent of respondents anticipate that the next 18 months will be challenging for the industry, they are more optimistic about investment outlook and new fund launches within that same period. Nearly 65 percent of respondents are confident that there will be attractive investment opportunities, and slightly more than half of respondents indicated that they plan to launch a new investment fund within the next 18 months.
"Over the past decade, there has been a significant increase in the number of successful women in the alternative investment community. Women have attained leadership roles in every niche and have added to the rich diversity of the hedge fund, private equity and venture capital sectors, to the benefit of investors and partners. These women are having a major impact on the direction of the industry," said Kelly Easterling, a Principal in the Financial Services Practice at Rothstein Kass and Principal-in-Charge of the Firm's Walnut Creek office.
Most survey respondents believe it is more difficult for women-run funds to attract capital. Slightly more than 40 percent of respondents believe capital-raising is more difficult for women-run funds because women often lack the investment track record their male peers have. About a third of respondents believe that women's capital-raising efforts are hindered by the stereotype that women are more committed to family and personal responsibilities than their career. Slightly over 30 percent believe it is harder for women to raise capital because they have less access to investor networks.
Other notable findings include:
Nearly 70 percent of the women surveyed expect the next 18 months to be more difficult than the preceding period. In spite of this, slightly over 60 percent of survey respondents anticipate an increase in new fund launches over the same period.
Although most respondents believe fund launches will increase in the next 18 months, respondents were divided as to whether more women would participate in these launches. Yet more than half of our survey respondents are planning to introduce a new fund themselves in the next 18 months.
Over 70 percent of respondents plan to raise capital in the next 18 months.
Family offices (52 percent), pension funds (52 percent), high-net worth individuals (50 percent), foundations (41 percent) and endowments (35 percent) are seen as most likely sources of new capital. Sovereign wealth funds (25 percent) and "other foreign sources of capital" (18 percent) were also viewed as significant sources of capital.
In an uncertain economic climate, over 65 percent of participants are confident that there will be attractive investment opportunities in the next 18 months.
A majority of respondents expect terms for new capital to be less favorable to fund managers in the next 18 months.
To help facilitate women's advancement in the industry, respondents noted that women need greater access to roles which enable them to establish an investment track record, more women need to be recruited into the industry, and institutional investors should consider women's representation in investment roles when making allocations.
The report also identifies the factors most critical to respondents' success in the industry. The most important factors were having a strong professional network, having strong mentoring relationships, willingness to take risks, strategic career planning, and strong support networks.
"One of the goals of 85 Broads is to use our platform to match great ideas with great talent," explained Janet Hanson, Founder and CEO of 85 Broads. "In recent years, we've seen greater numbers of senior-level women strategically investing significant capital in start-up companies and funds led by women. Senior women are making these investments, in ventures often led by young women, not out of an obligation to give back or for charitable purposes, but because they are investing in real talent. I think this trend will continue, and that we'll see more women with capital investing in funds directly. This is an encouraging development for the industry as a whole."
"Women in Alternative Investments – Industry Outlook and Trends," draws on the collective wisdom and expertise of the professionals of Rothstein Kass, 85 Broads, and an advisory board comprised of women leaders in the alternative investment industry to provide context for statistical findings. The Association of Women in Alternative Investing, the Women's Association of Venture and Equity, The Women's Private Equity Summit and the Women's Alternative Investment Summit also contributed to the report. Where applicable, results are contrasted against the results of earlier Rothstein Kass research initiatives focused on the hedge fund and private equity communities.
More minorities and women are working on Wall Street, but white men remain very dominant when it comes to the financial rewards available there, according to a new report issued by CUNY's Center for Urban Research (CUR), which is located at the Graduate Center of the City University of New York (CUNY).
"Ambition is not the issue, and lack of ambition is NOT what holds women back. It’s the COST of ambition – and the struggle women face in pursuing their ambitions — that is at the heart of why we have so few women leaders today, and why women are achieving less and not reaching as high as men in corporate America," argues post author Kathy Caprino.
As a very ambitious professional woman who supports the advancement of other ambitious women, I’m truly sick of this myth. I can tell you, from working with and speaking to thousands of professional women in the past eight years, it’s simply not accurate. Ambition is not the issue, and lack of ambition is NOT what holds women back. It’s the COST of ambition – and the struggle women face in pursuing their ambitions — that is at the heart of why we have so few women leaders today, and why women are achieving less and not reaching as high as men in corporate America.
The more we support this incorrect conclusion, the more disservice we do to the advancement of women. Again, ambition is not the problem; it’s the enormous personal sacrifice women today must make (that men do not have to) in order to reach the top that halts women in their tracks. And it’s the reality that even when women stay on a traditional career path and do “all the right things” they are unlikely to advance as far or earn as much as their male counterparts (see Catalyst’s recent study The Myth of the Ideal Worker).
Only when we address the root problem that keeps women from their professional ambitions, will we pave the way to greater progress.
Key findings about women on corporate boards around the world, from Corporate Women Directors International.
KEY FINDINGS -- The Good News
· Quotas for women directors and gender diversity language in corporate governance codes are beginning to crack the boardroom glass ceiling in Europe.
-- 36 Fortune Global 200 companies based in countries with quotas had a higher percentage of women on boards (16.1%) than the average percentage of women directors – 13.8% -- of all companies in the Fortune listing.
-- 65 Fortune Global 200 companies based in countries that had gender or board diversity requirements added to their corporate governance codes also had a higher percentage of women directors at 16.8%.
· France, whose quota law passed in 2010, had the highest rate of increase in the percentage of women directors among their Fortune Global 200 companies -- from 7.2% in 2004 to 20.1% in 2011.
· The second highest rate of increase for women directors belongs to Spain, whose quota for women directors passed in 2007. Its Fortune Global 200 companies improved women’s board representation from 1.9% in 2004 to 9.2% in 2011.
· U.S. companies still lead other Fortune Global 200 companies with 20.8% women’s representation on boards, but are poised to lag behind France (20.1%) shortly, given its anemic rate of increase of 3.3% since 2004, surpassed only by Japan’s 1.1%.
· More blue-chip companies are moving away from tokenism – almost a third of companies in the 2011 Fortune listing have three or more female directors. Leading this trend are France and the U.S., with 62% and 42.4% of their companies, respectively, with three or more women on their boards.
· First in CWDI’s “Top Ten” list of companies with the highest percentage of female directors is Procter and Gamble with 45.6% of its board being female (5 out of 11), followed by Wellpoint at 41.7% (5 out of 12). Third on the list is a Norwegian oil company, Statoil at 40% (4 out of 10).
-- All companies in the Top Ten list have 30% or more women’s representation on boards – the highest cut-off point since 2004.
-- For the first time since 2004, an automobile company, General Motors, made it to the CWDI Top Ten listing with four women directors out of 11 or 36.4%.
· The industries most responsive to having more female directors are those that see women’s consumer clout more directly: Food and Consumer Products; General Merchandisers; Mail, Package and Freight; and Healthcare.
– The Bad News
· There are more companies with no women directors among the Fortune Global 200 in 2011 – 49 – than in 2009. This is due to the changed composition of theFortune listing with 31 new companies, primarily from Asia, the majority of which have zero or only one female director.
· For the first time, China had 19 companies that were sizeable enough to make it into the Fortune listing compared to only 3 in 2004, reflecting its dynamic growth. The majority of Chinese companies (14) had either only one woman director or none. However, two Chinese companies outperformed others – the Bank of China with 28.6% of board seats (4 out of 14) held by women, and China Construction Bank with 26.7% (4 out of 15).
· Japan, the third largest economy of the world, continues to be a laggard in appointing women to board seats – only 2% of directors in its largest companies are female.
· South Korea has the stellar record of having no women on the boards of its companies in the Fortune listing from 2004 to 2011.
· The Petroleum Refining industry, with six of the ten largest companies in the world, continues to have a poor record in appointing women to their boards Only five women are on the boards of the top six – Royal Dutch Shell, ExxonMobil, BP, Sinopec, China National Petroleum and Chevron.
The exceptions: Norway’s Statoil (40%) and France’s Total (26.7%)
Chancellor Angela Merkel recently expressed satisfaction with a pledge by some blue-chip companies at an October meeting to voluntarily increase women on their boards at varying paces. There Lufthansa pledged a figure of between 15 and 30 percent by the end of 2020. Adidas talked about 30 percent by the end of 2015.
A new survey from The Family Wealth Advisors Council, a network of independent wealth advisers, gives some clues. Women, it says, want their advisers to understand their “life pictures” and “financial journeys” rather than just their investments.
Over the next 20 years, some $25 trillion will be passed to women through divorce, death of spouse or inheritance. They already make up just under half of the nation’s millionaires. Combined with their growing earning and wealth-creation power, women may account for up for two thirds of the nation’s wealth by 2030.
Those numbers have financial industry salivating over how to serve the women’s market. Private bankers, brokers, trust companies, family offices and wealth managers are all asking the same question: What do wealthy women want?
A new survey from The Family Wealth Advisors Council, a network of independent wealth advisers, gives some clues. Women, it says, want their advisers to understand their “life pictures” and “financial journeys” rather than just their investments. (Men, by contrast, might hang up if their broker asked about their “life picture.”)
Women in the Boardroom: A Global Perspective, examines the legislative efforts being pursued across 17(i) countries to encourage more women to serve on listed company boards.
The updated edition of the report, by the Deloitte Global Center for Corporate Governance, comes after numerous governmental developments have evolved in several countries since the January 2011 publishing of the first edition. The new research highlights a variety of approaches to support diversity on boards, including requiring more disclosure, setting targets, and implementing quotas. According to the study, strong variations exist among countries regarding the most efficient way to achieve higher levels of diversity.