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.
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