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July 2021 | Issue 236
News
Diversity database shines light on credit firms not stepping up
Michelle D'Souza headshot
Michelle D’souza
Reporter
Private credit managers are significantly lagging behind their industry counterparts when it comes to hiring under-represented groups, including front office, distribution and investment committee roles, according to data from Diversity­Metrics, a new data-driven platform launched by executive search firm Jensen Partners.
At the largest 20 credit firms, one in four front-office professionals are women, while only 1.2% are black. By contrast, 80% are Caucasian.
Sasha Jensen, founder of Jensen Partners, says she has spent many years watching clients set their intentions to hire diverse candidates at the beginning of a hiring process, but most fail to follow through.
“We looked back at the diverse candidates we had presented to clients [but] most end up hiring white Caucasian males,” says Jensen. “This was because that candidate ticked all the boxes, had all the experience and there was no leeway.”
The New York-based firm decided to launch Diversity­Metrics to throw a spotlight on where firms stack up in terms of diversity hires, those who are being promoted within that platform and even employees leaving platforms because inclusion goals have not been met.
“Firms need to reduce the number of boxes they need ticked”
Sasha Jensen, Founder | Jensen Partners
The positive news is that the data shows a strong pipeline of candidates firms can hire, Jensen says. “The talent pool is clearly there, but firms need to reduce the number of boxes they need ticked on their human project capital management specs and accept people from diverse backgrounds and mentor and advance them,” she says.
Jensen says there are some signs of change and her firm has worked on three credit buildouts where 80% of candidates were from diverse backgrounds.
Credit firms which focus on diversity stand to benefit. A recent study by Coalition Greenwich found investment consultants are more likely to recommend managers who commit to diversity.
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Global credit funds & CLO's
July 2021 | Issue 236
Published in London & New York.
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