Diversity | Equity | Inclusion (DEI)
Diversity, Equity, and Inclusion (DEI) are essential for a number of reasons. First, a diverse workforce can provide a wider range of perspectives and experiences, which can lead to better decision-making. Second, a more inclusive workplace can attract and retain top talent, regardless of their background. Third, DEI can help investment management firms better understand and serve their customers, who are increasingly diverse. There are a number of things that buy-side firms can do to improve their DEI efforts:
Create a culture of inclusion. Create a culture where everyone feels welcome and valued, regardless of their background. This can be done by providing training on unconscious bias and creating employee resource groups.
Recruit and retain diverse talent. Make a concerted effort to recruit and retain diverse talent. This can be done by reaching out to underrepresented groups, offering flexible work arrangements, and creating a welcoming and inclusive workplace.
Serve diverse customers. Understand the needs of their diverse customers and develop products and services that meet those needs. This can be done by conducting market research, hiring diverse staff, and partnering with community organizations.
In addition to the benefits listed above, DEI can also help firms avoid legal problems. For example, the Dodd-Frank Wall Street Reform and Consumer Protection Act requires financial institutions to take steps to prevent discrimination in their lending practices. By creating a more inclusive workplace, and companies can reduce the risk of violating this law.
Here are some specific examples of how asset management firms are working to improve their DEI efforts:
BlackRock, the world's largest asset manager, has set a goal of having 40% of its workforce made up of women and underrepresented minorities by 2025
Vanguard, another large asset manager, has created a number of employee resource groups for underrepresented groups, such as women, Black employees, and LGBTQ employees
State Street Global Advisors, a leading asset manager for institutional investors, has launched a number of initiatives to promote diversity and inclusion, including a mentoring program for women and underrepresented minorities
The Carlyle Group created a DEI Leadership Network of Portfolio Company CEOs to help drive DEI efforts across the firm's portfolio companies
Apollo Global Management has set a goal of having 50% of its workforce made up of women and underrepresented minorities by 2025
Blackstone has created a number of employee resource groups for underrepresented groups, such as women, Black employees, and LGBTQ employees
KKR has launched a number of initiatives to promote diversity and inclusion, including a mentoring program for women and underrepresented minorities
D1 Capital Partners has set a goal of having 50% of its workforce made up of women and underrepresented minorities by 2025
Coatue Management has created a number of employee resource groups for underrepresented groups, such as women, Black employees, and LGBTQ employees
Bridgewater Associates has launched a number of initiatives to promote diversity and inclusion, including a mentoring program for women and underrepresented minorities