In principle, PE firms have the same modern HR tools at their disposal as any other company: parental leave, sabbaticals, working from home and childcare support. For small holding companies, as we see, this is still a challenge.
We see two strategies in private equity, depending on the problem a firm is trying to solve. The first is hiring (more senior) women who have to hit the ground running on day one. Finding them is the headhunter’s job, at first glance. These people can be found, but the risk of losing them again quickly rises. If the list of criteria (female, deep industry knowledge, operational skills, consulting background, location, availability, salary and so on) is stretched too far, the arrangement breaks down more easily, depending on how many compromises both sides had to make to achieve a “diverse” appointment.
The second strategy is to hire women early, well ahead of need, and develop them. The Big Four and the large consultancies have done this for years. PE firms are increasingly willing to invest in female talent by hiring juniors with a consulting background and teaching them the hands-on, delivery-focused skills of private equity. Giving them the chance to build their PE expertise in a supportive culture is crucial. Many PE firms are widening their search to include candidates from the Big Four and large consultancies. Smaller PE teams, which need more hands-on experience from their people, often face particular challenges in diversifying. They aren’t big enough to train and grow team members over long periods; the very next deal can be make-or-break. In such cases, firms may need to rethink their expectations and adapt to different styles of contribution and leadership so that women can thrive. That may mean dropping the condition that everyone must be ready to go from day one.
Changing the culture and leadership style is much harder than simply finding “the right headhunter” or “the right candidate”. More on that in our next post.
