Black History Month: ‘Time for Change: Actions Not Words’

Black History month is a time to focus on racial equity, representation and allyship. For us, it is also a time to assess the progress made by the private equity and venture capital industry and to acknowledge that there is still much work to do in the movement towards fairer representation, especially at senior level.
In our last study on Diversity & Inclusion published in early 20211, we found that only 3% of the total employees2 across all functions and levels identified as Black/African/Caribbean. This figure dropped to less than 1% for senior level investment professionals who identify as Black/African/Caribbean.
It is undeniable that there is a clear lack of ethnically diverse talent in PE and VC firms, at all levels. However, initiatives are flourishing to tackle this issue and recruit outside the industry’s ‘comfort zone’. The 10,000 Black Interns programme is one of these initiatives. Founded by industry leaders including Wol Kolade, Managing Partner at Livingbridge, the initiative’s aim is to recruit 10,000 black students and graduates, over the next 5 years, into paid internships with mentoring support. Although by no means exclusively focused on private capital firms, the aim is to help all companies involved to diversify their talent pipeline and future leaders, which has been proven by countless studies to improve decision making and, ultimately, business outcomes.
Once talent is hired, there is the challenge of retention and creating a work environment where black employees can thrive and feel a sense of belonging. The Black Inclusion Index has the objective of producing a robust measure of Black Inclusion in workplaces, providing access to a tangible metric to identify inclusion gaps and help companies to create inclusive workplaces.
It is also important to monitor the number and progress of Black and other ethnically diverse individuals in PE and VC firms and across the industry. A good way to do this is through workplace surveys so that individuals can self-identify. However this needs to be done sensitively, and with an explanation of how the data which is collected will be used – for example to ensure that everyone gets a fair chance at mentoring or promotion. Frequent pulse surveys to gather feedback on employee sentiment can also provide business leaders with insights on whether their actions on diversity are making a difference.
Finally, it can be difficult to feel included if ethnic minority role models are not prominent within organisations. That is why we at the BVCA want to ensure that we provide a platform for Black individuals where possible, and why we actively supported the inaugural Black Women in Asset Management last week.
This year’s theme for Black History Month – ‘Time for Change: Actions Not Words’ is a call to arms for organisations and individuals to step up and act with firm commitments and initiatives.
The BVCA pledge:
Firstly, on measuring and monitoring ethnic representation within the PE / VC industry. We are once again partnering with Level 20 on the next edition our Diversity & Inclusion survey of General Partners, the results of which will be published in early 2023. If you have not received an invitation to participate and would like to do so, please contact [email protected].
Secondly, we have a dedicated annual series of Diversity & Inclusion events, the next of which is our Ethnicity and Diverse Founders reception, which will bring together senior professionals in PE and VC to share their perspectives on how our sector can improve its approach to attracting and retaining, people from a wide range of backgrounds. To register your interest please click here.
Finally, through seeking out speakers from diverse backgrounds to participate in our events so that the voices of a diverse range of talent can be heard.
At firm level, what can you do?
- Transparency and data: Collecting and analysing data on diversity and participating in industry-wide surveys. The data could provide a means of driving positive action once reviewed and shared widely.
- Recruitment and outreach: Reviewing and enhancing recruitment processes to attract more diverse people from different backgrounds to join the private equity and venture capital industry.
- Retention and progress: Developing people of all backgrounds so that they stay within the industry and build successful careers. The provision of ongoing mentoring support could help retain and bolster the career progression of Black, Asian and ethnic minority employees.
- Culture and inclusion: Encouraging a culture that welcomes and promotes diversity of background, experience and thought.
At a personal level, what can you do as an individual?
- Be an ally.
- Stay ahead of trends and developments and explore the Black History Month website.
- Become a mentor
- Join initiatives in your organisation that make a difference and focus on real change.
Gurpreet Manku
Deputy Director General, BVCA
Suzi Gillespie
Head of Research, BVCA
- Survey run by the BVCA and Level 20, collecting data on gender and ethnicity as at 30th June 2020. A total of 186 firms responded, with over 8,700 employees in UK and Europe.
- No. firms = 73 No. employees = 2,703