Insights

(McKinsey & Company) The state of diversity in US private equity. 
McKinsey & Company examine the efforts of PE firms to ensure a diverse workforce. The data shows that private equity firms have increased the percentage of ethnically diverse talent and women employees but note that promotions for women and deal-team diversity metrics are still lagging.

(FT.com) Fund houses buy up ‘alts’ specialists to move beyond equities and bonds
Following Oak Hill’s acquisition by T. Rowe and CarVal’s acquisition by AllianceBernstein, FT calls attention to fund managers’ drive to acquire private equity and private credit businesses. Higher management fee revenues and the demand for alternative strategies from private wealth channels are cited as driving forces.

Not included is First Eagle’s announced acquisition of the credit manager Napier Park, which follows earlier acquisitions of THL Credit and Newstar. The First Eagle acquisition highlights the driving force private equity sponsors are playing in asset management M&A and growth strategy.

(WSJ) Investors Pile Into ETFs Dedicated to Socially Responsible ESG

For those who questioned if ESG has staying power, 2020 responded with a resounding “yes.” According to FactSet, flows into US ESG-related ETFs reached a record $27.4 billion in 2020, doubling the size of the sector. With a new climate-friendly administration taking office in the US, demand for ESG funds should continue to rise in 2021 and beyond.

(Towards Data Science) Red flags in data science interviews

We liked this opinion by Jacqueline Nolis* for the value it offers to candidates, hiring managers, and HR alike. To be clear, the piece is written for candidates – the author’s intended audience is specific to those interviewing for Data Scientist jobs – and she provides great tips for assessing a company’s data science infrastructure, processes, and priorities.

But if hiring managers pay close attention to the author’s suggestions, they’ll find great tips for improving their candidates’ experience and leaving a strong impression. At a minimum, think of the article as a list of ‘what not to do’ (and check-out our tips for creating an excellent candidate experience). Among other suggestions, Jacqueline tells candidates to watch out for an unstructured interview process, inconsistencies in interviewers’ description of the role, and the lack of a clear plan after onboarding.

Are you making any of these mistakes? We find that they’re common (…too common) and applicable beyond Data Scientist interviews. Top candidates display higher levels of excitement and confidence in a business which they believe is well-organized, and they make that judgment through the lens of the interview process. Read the article to see your interview process through their eyes. And if you need help organizing your talent acquisition process or making a strategic hire, get in touch. We are here to listen and help.

*Jacqueline is a Principal Data Scientist and independent author writing in Towards Data Science, on Medium‘s publishing platform.

To emerge stronger from the COVID-19 crisis, companies should start reskilling their workforces now

Companies and their employees must respond to the rapidly changing conditions that the COVID-19 crisis has thrust upon the workplace. Firms must help their people adapt and evolve to those changes. By addressing these issues now companies will be stronger and prepared for future disruptions.

This article published by McKinsey suggests these six steps to reskilling:

• Rapidly identify the skills your recovery business model depends on
• Build employee skills critical to your new business model
• Launch tailored learning journeys to close critical skill gaps
• Start now, test rapidly, and iterate
• Act like a small company to have a big impact
• Protect learning budgets (or regret it later)

(Institutional Investor) How far will asset management pay fall? 

Johnson Associates, a compensation consultancy, gives projections for 2020 bonus expectations (relative to 2019), with down numbers across the board (almost). Private wealth and traditional active managers can expect 75-80% of their 2019 numbers, while hedge fund and private equity professionals will be down less (in that order). In each category, exceptions can be made based on the size or strategy of the company, with some macro and even-driven strategies as notable outperformers in Q1. In our experience, individual performance is a significant driver in line with firm-wide performance.

Up on the 18th floor, equity and fixed income sales/trading teams at the Banks should look forward to a 15-20% increase in bonus incentives.