Diversity & Inclusion (D&I): Topics on the Private Equity Agenda
Young M&A approached Brigitte van der Maarel, Managing Partner at Karmijn Kapitaal and a member of the Dutch committee of Level20, for an interview on the topic “M&A/PE, D&I then and now.”
The inspiring conversation focused on the driving forces behind a career in the financial industry. The topics of “intrinsic motivation” and “inclusive culture” were central throughout the discussion.
In September last year, Brigitte van der Maarel was appointed Managing Partner of Karmijn Kapitaal. In addition to her regular work, Brigitte is a member of the Dutch committee of the non-profit organization Level20, which aims to increase the number of female investment professionals in PE.
How have you been able to take the steps you desired in your career in a sector where women are significantly underrepresented?
When I graduated from university, I didn’t have a sounding board or sponsor in the financial world. It wasn’t so much that I missed that at the time; I wasn’t aware of how it would be if someone could think along with you based on market knowledge and your personality. I didn’t view myself as a woman going to work; I saw myself as a professional, independent of gender. Given my studies in business economics with a focus on Financing & Investment, transitioning into mergers and acquisitions was a logical step for me.
Looking back at my career steps, I’ve always remained very true to my areas of interest, and in doing so, my goal. My path was not always straightforward and often not easy. I’ve had to make some difficult decisions and faced various dilemmas. The diversity, in terms of gender, was low. To survive, I often had to balance between my authenticity and the dominant culture. You can only maintain that if you’re doing work that you are intrinsically motivated by. Since this work is intense, it was also important to me that the tasks aligned with my knowledge and qualities.
I’ve been influenced by my own background in this regard: I was raised with a very strong sense of personal responsibility. My gender didn’t play a role in that. Both of my parents worked from a young age, and soon my mother also worked full-time, which went against the prevailing norm at the time. Work provided my mother with a form of challenge and social dynamics, which to this day remains a big driver and safety net for her. I lived far from school, and due to my intensive sports schedule, I was often home late in the evenings. So, I had to be independent, especially in the world of those days, without a mobile phone or email.
What role does D&I play in the Private Equity sector?
D&I is a broad topic on the Private Equity agenda. After an earlier phase where it was necessary to show "proof of value creation through diversity," and that was demonstrated, there is now more attention on questions such as "what is needed to actually achieve diversity."
How does Level20 support female investment professionals and PE funds in their goal to increase diversity at all levels?
Level20 focuses on increasing the percentage of female investment professionals at all levels, through national committees. Of course, diversity is broader than gender, and gender is broader than just male/female. Currently, the focus is on increasing the percentage of women because there is a significant underrepresentation in private equity. According to research conducted in 2020, the percentage of women active in PE was 4% at the senior level and 11% on average across all levels. Venture capital funds show slightly higher percentages but still under 20% on average.
Level20 aims to achieve its goal along the following axes: join, retain & promote, and “create a diverse and inclusive organization.” This involves increasing inflow and reducing outflow.
To demonstrate the attractiveness of working in the industry, we organize guest lectures, workshops, and Summer Academies, where students and funds can introduce themselves personally and substantively to each other. Internship opportunities within the Private Equity sector are also highlighted. We are currently looking at how we can successfully broaden the outreach to individuals with a few years of work experience elsewhere.
Increasing retention is crucial: turnover among female professionals is about twice as high as among male professionals. If the sector wants to show success in the medium term, the retention rate needs to go up. Through research on the reasons for early departure, Level20 has defined the services it offers. This has led to the creation of the mentoring program, where mentees are paired with mentors at partner level from other firms, and workshops for both mentees and mentors. Since PE funds in the Netherlands are often relatively small organizations, having role models and sparring partners is of great importance, and we also organize various networking events.
In parallel with the above, funds are offered meetings on topics such as “unconscious bias,” “inclusive recruitment,” and “how to achieve an inclusive culture.” First, it’s about raising awareness of assumptions, then having open discussions, which will lead to solutions.
A good example of this is the openness that came out of these discussions: for some, there was a deep assumption, stemming from their own (conservative) home situation, that made it hard for them to understand how a female professional could do this work alongside a family situation. When discussing these topics, they were also concerned about saying the wrong things. The conversation, therefore, needs to be very open and focus on the assumptions they are making. It must be said without immediate judgment, or else the conversation doesn’t progress. By the way, the need to critically assess one’s own assumptions doesn’t just apply to men, but also to women. Therefore, an inclusive culture also helps male professionals.
How do you think a mandated quota in the PE sector could work?
To answer this question, it’s helpful to look at the structure of PE funds: PE funds in the Netherlands are relatively small professional organizations. Where larger companies steer gender diversity through quotas, the Limited Partners (LPs), the investors in the funds, have placed diversity on the PE funds’ agenda. In this way, they promote diversity, just like a quota system does, in a transactional, goal-setting, and monitoring manner. LPs also put sustainability, through ESG goals, on the agenda, which has led to a positive movement.
I believe that if you really want diversity to succeed, there also needs to be a transformational change towards an inclusive culture. The sector is competitive, and funds are naturally competitive. Now that some funds are being addressed about the lack of diversity, the topic is being taken seriously. Currently, many funds are focusing (primarily) on hiring young female professionals for the analyst or associate role. Personally, I think this leads to an undesirable situation: for the current generation of young male professionals, this sometimes leads to exclusion, and for the current generation of young female professionals, it leads to a “proof burden” of success. By hiring all genders at all levels of an organization, the chances of achieving a truly inclusive culture are higher.
What were your motivations for joining Karmijn Kapitaal?
Karmijn Kapitaal is a unique fund in the Netherlands: it was founded 12 years ago by three female partners. Karmijn invests in Dutch SMEs, in substantial minority and majority positions, where we aim for the promised returns for our investors while also paying attention to the value of diversity. This means we help SMEs create an inclusive culture and provide tools on how to embed this in the organization, agreements, and communication. We also have many female investors.
My transition allows me to pursue the profession I enjoy from an entrepreneurial position. The culture is open and inspiring, and we have a good, diverse team.
Finally: do you have any tips for female starters in M&A and PE?
Follow your curiosity. It’s amazing and very varied work. If you’re interested, I recommend speaking with different funds and applying for internships. This way, you can truly immerse yourself in the sector and assess if the work aligns with your interests and qualities. Approach professionals and ask for their support or advice. This applies to men as well if they don’t have a network in this world. This will help you create your own sounding board. Also, take a look at the many interesting guest lectures and the Summer Academy that Level20 organizes, as well as the many internship opportunities.