Representation in asset management: The data on minority- and women-owned firms
17 June 2020
eVestment collects data on 25,000+ strategies from 4,000+ asset management firms. In addition to full quantitative data, the profiles in eVestment Analytics also include qualitative insights into firm ownership, key professionals and investment philosophy and process.

Five hundred and fifty-eight of the 2,045 U.S.-based asset managers on the eVestment database, or 27%, reported having any minority or women owners. This compares to 520, or 26%, which reported having no minority and no women owners and 967, or 47%, which did not report firm ownership data.

There exists a bias not to report such data among firms without minority or women representation and therefore the true percentage of asset management firms with minority or women ownership is likely closer to 27% than it is to 50%.

That being said, we note that there are many cases where the question is truly not applicable, for instance for publicly-traded or mutual insurance companies, or wholly-owned subsidiaries of such firms.

As a percentage of all 2,045 asset managers, roughly 19.8% stated that women held some share of the firm. This compares to 9.9% for Asian-owned, 4.1% for Hispanic-owned, 3.6% for African American-owned, and 3.6% for other minority-owned.

U.S. Firms Reporting Minority & Women Ownership to eVestment

Percentage of Firm Ownership

Percentage of Ownership for Firms with Any Representation

Among firms with any minority/women ownership, roughly half were majority-held by minorities and women. A substantial factor in the number of asset managers which are majority-held by minorities and women is the amount of firms which are held exclusively or almost exclusively by minorities and women.

More generally, the barbell distribution of minority/women firm ownership, as opposed to a bell curve-like distribution which would occur under random assignment, is a clear indication that there still exist significant frictions to efficiently clearing the market for asset management talent.

Diving deeper, we find similar results across more granular groups. Among the differences, there tends to be a larger share of minority-owned firms which are exclusively or almost exclusively owned by each minority group outlined below as compared to women-owned firms. eVestment has also recently started collecting data on firms owned by professionals with disabilities – we chose to leave this out of the analysis for the time being due to a lack of data.

Comparing Share of Firm Ownership

While there clearly remains work to be done, we find the number of firms providing granular information on minority and women firm ownership encouraging. eVestment will continue to partner with the asset management industry in bringing increased transparency for all stakeholders.

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