Thelander IF Digest: August 2022

Which Firms are Investing in CEOs Who are Women or Under-represented Minorities?

August’s Thelander Digest examines how AUM and type of firm impact the percentage of portfolio companies headed by women and/or under-represented minority CEOs. Let’s dig in by exploring the numbers. 

• AUM has a large impact on the percentage of portfolio company CEOs who are women or under-represented minorities.
• Firms with under $500 Million AUM had the highest number of portfolio companies with women and/or under-represented minority CEOs.
• However, firms with over $1 Billion AUM had the  highest proportion of firms reporting more than 75% of their portfolio companies were headed by women or under-represented minority CEOs.

How does compensation tie into this?

• The data tables below show how first time male and female CEOs are compensated for under $15 Million in total financing across ALL industries and regions.
• While the compensation is comparable across the median and 75th%ile, what stands out is that male CEOs out number female CEOs almost three-to-one in this group. 
• Given how female CEOs receive less funding from VC and PE firms (as demonstrated in the graphs above), it is clear that there is a direct correlation between how many companies are women-led and the capital being invested in them. 

Thelander is the only firm that covers the entire private capital market from your investment firm to your portfolio companies compensation. Did you enjoy our Thelander Digest, have ideas for future ones, or want to learn more about how J.Thelander Consulting can help you make informed decisions when it comes to hiring, incentivizing, and retaining talent? Email us here or give us a call at 305-793-8605. We love to hear from you!