Diversity, equity and inclusion (DEI) investments strategies 

We have more than 15 years of experience researching and advising on diversity, equity, and inclusion (DEI) investments. Our team of 240 DEI specialists1 works with you to define what diversity means for your organization, integrating it into your portfolio and investment decision-making process.  We help our clients enact positive change while helping you achieve business goals.

DEI investments are high on investors’ agendas

As part of a wider strategy to invest sustainably, integrating a diversity, equity and inclusion (DEI) lens allows you to align your portfolios with your mission and organizational values, position yourself to help achieve long-term sustainable returns and helps to drive change that could ultimately benefit us all. 

A more diverse, equitable and inclusive work environment not only boosts innovation, research shows1 organizations who exhibit strong DEI credentials also perform better. DEI is an important consideration to sustainable investment, but key challenges remain. Identifying and potentially gaining access to what we consider the best DEI managers and performing all aspects of the investment process takes time and resources. This is where we can help.

Drivers behind the rise in DEI investments2

29%

More than 29% of women-owned private equity firms are top-quartile performers.

34%

More than 34% of minority-owned private equity firms are top-quartile performers.

19%

Companies with higher-than-average diversity achieved 19% higher innovation revenues.

35%

Companies in the top quartile for racial/ethnic diversity are 35% more likely to surpass their peers.

15%

Companies in the top quartile for gender diversity are 15% more likely to surpass their peers.

1 Source: The Knight Foundation. As of January 2019 | Ownership defined as 50% of equity or more; minorities defined as Hispanic, Black, Asian and Native American.

2 2020 McKinsey report. Diversity wins: How inclusion matters.

Common challenges associated with DEI investing 

This involves finding and investing with managers who have the potential to deliver quality outcomes and at the same time are focused on furthering DEI goals. Our global scale and reach allows us to work with clients to source and connect with managers who are aligned with overall objectives.

The market is moving toward increasing diversity in portfolios and institutional investors have an opportunity to embrace this shift and capture opportunities. Our specialist team provides research, advice and solutions that can help you achieve your goals, in line with your unique governance model and investment objectives.

We believe building a balanced portfolio that includes strong, diverse managers at all stages of development (emerging managers as well as more established managers) has the potential to generate attractive risk-adjusted returns.

Manager selection is a critical component when managing a portfolio, but with hundreds of diverse managers in the market today, making a choice can be overwhelming. Our robust sourcing, rigorous manager research and due diligence process seeks to identify those managers that we believe will consistently and continuously outperform.

Three steps to integrate DEI into your investment portfolio

No matter where you are on your DEI journey, we can assist you in creating a plan to help achieve your goals.
  1. Define what diversity means to you
    Diversity means different things to different investors, so the first step is to define what it means to you. We can help you understand the potential benefits and challenges linked to different DEI qualifiers. This will ensure your policy supports the direction you want to go without being too cumbersome or limiting to your portfolio. For example, some clients focus solely on the composition of a firm’s ownership, while others include the composition of key decision makers.
  2. Build a process and plan 
    Step two is to define clear DEI investment goals, and the processes and procedures needed to support these goals. This often requires making changes to investment policy statements. For example, some clients use an actual percentage goal for capital committed to DEI managers, whereas others use broader guidance. It's also important to establish measurement mechanisms to evaluate and understand your progress towards your DEI goals.
  3. Implement your plan
    There are hundreds of diverse-led funds in the market today. We conduct ongoing research to help you quickly understand the market, and we help you create customized searches to identify opportunities that fit your specific DEI criteria. Our dedicated DEI researchers provide curated manager expertise to help ensure you can execute your investment plans.
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