The World Economic Forum currently forecasts that it will take five generations to reach full gender parity. International Women’s Day, celebrated on 8th March, represents an opportunity to celebrate the progress already made and also how the financial services sector can accelerate action by doing more to facilitate the optimal career progression of a large portion of its talent pool. We must, however, also consider how more can be done to create a level playing field.


The increasing focus on diversity and inclusion, as well as the success stories of women in this industry, is helping to change the landscape. Many hedge funds and private equity firms now understand that fostering a diverse talent pool is not just the right thing to do, but also makes good business sense.


The alternative investment sector has historically been male-dominated, with limited opportunities for women at the senior and leadership levels. However, in recent years, there has been a shift toward greater diversity, equity, and inclusion within these industries. 


The changes we are seeing in this sector present numerous opportunities for women who are interested in pursuing careers in asset management, with significant potential for professional growth, financial rewards, and the ability to shape the future of these industries.


Diversity and inclusive decision making

One of the key drivers of change is the growing recognition of the value of diversity in growing successful financial services businesses. The demand for diversity has stretched to the boards of funds, where increasingly the larger investors have been pushing for more female professionals on boards. This in turn is creating opportunities for female professionals who have track records in investment firms or in service providers like fund management, administrators or their professional advisors.


Larger firms within the fund management and fund services sectors are now solidly investing in diversity and inclusion programmes, pioneering programmes to enable women to gain access to career opportunities that were previously limited to their male counterparts. These programmes include mentorship opportunities, leadership development initiatives, flexible work arrangements and networking events that help women build relationships within the industry and rise through the ranks.


Professional growth and leadership roles for women

The opportunities for women within the funds industry go beyond entry-level positions. As firms recognize the importance of diverse leadership teams, more women are being promoted into top roles. In fact, several women have already broken through the glass ceiling and are leading successful hedge funds and private equity firms. There are also now alternative investment firms with pre-dominantly female leadership teams.


The demand for female leaders in these industries has opened up new avenues for women to gain greater responsibility and influence. As more women make their mark, they also serve as role models for younger generations of female professionals aspiring to break into the hedge fund and private equity sectors.


Financial rewards and influence

The financial rewards within the investment industry is significant, offering women the potential for higher earnings, career advancement, and long-term wealth accumulation. In private equity, professionals often benefit from performance-based compensation structures, which means that high performers can earn large bonuses based on the success of investments. Similarly, hedge fund managers typically receive a combination of management fees and performance fees, which can be substantial.


These financial rewards are a key draw for many women seeking opportunities in these industries, as they offer a pathway to economic independence and wealth creation. Furthermore, women in these fields can find themselves in influential positions, where they can shape investment strategies, advocate for more diverse portfolios, and influence the industries in which they invest.


Creating a female-friendly culture within funds

For alternative investment firms and their service providers, recruiting and retaining female talent requires the firm to create a culture which is friendlier to women. This can be tough for firms which have succeeded through a high pressure, alpha-driven management approach, but such employers could be missing out on next generation female employees who will go elsewhere.


As an example of creating such an environment, women should not need to choose between a family or a career. In today's evolving alternative investments workplace, achieving a work-life balance is not just a possibility, but is a priority for many financial professionals. More companies in the sector now offer flexible working arrangements, empowering their employees to thrive both professionally and personally. 


Such policies not only boost productivity but also enhance employee satisfaction and well-being and encourage high-performing female staff to remain in the sector.


Gender inequalities remain

Despite these opportunities, women in hedge funds and private equity still face challenges that hamper the race to reaching gender parity sooner than 2158. Gender biases and barriers to entry remain, with women sometimes struggling to break into high-level positions. The male-dominated networks and the long hours associated with the sector can also create barriers to work-life balance, particularly for women with caregiving responsibilities.


As we as an industry work towards accelerating action this International Women’s Day, I want to take up a call to action for us as an industry to do our part in getting to gender parity sooner than 2158.

 

[1] Women are poised to reshape the financial services industry | World Economic Forum