Private equity has long been a male-dominated industry, but a new analysis suggests that its gender imbalance might impact the companies that the firms invest in. The report reveals companies that receive private equity backing see a significant drop in female leadership.

Private equity firms specialize in identifying businesses that have untapped potential. By acquiring a controlling stake, the firms gain influence over strategic decisions. By bringing in new leadership, optimizing operations, and cutting costs, they try to help the company reach its full potential and increase its future earnings.

However, a new study from The LCap Group reveals that when private equity firms bring in new leadership to a beleaguered company, the new managers are mostly male. LCAP, a leadership consulting firm, examined European companies backed by private equity, and they analyzed what happens to company leadership after a private equity firm investment.

Read more at: https://www.forbes.com/sites/kimelsesser/2024/10/28/private-equitys-gender-problem-impacts-the-companies-they-back-report-says/