Diversity, equity, and inclusion in private capital: more than the metrics

Can you start by telling us a little bit about your current position?
As the head of portfolio management and an investment committee member at Locust Point Capital, I work on a team that works diligently to provide attractive risk-adjusted investment opportunities in the US seniors housing sector. 

What do you think are effective strategies for firms to retain women at the senior management level?
The COVID-19 pandemic shone a spotlight on long-standing gender inequalities in the workforce. It is an unfortunate fact that even prior to the pandemic, women were often paid less than their male counterparts, underrepresented among leadership positions, and shouldered disproportionately more domestic responsibilities. The pandemic exacerbated these issues as women with children struggled to balance working from home with childcare. As a result of this heightened awareness of gender inequity, greater emphasis has been placed on diversity, equity, and inclusion (DEI) initiatives at many organizations.

Ensuring that women remain in the workplace is an important step toward reaching gender equality and broader diversity within the workforce. Having women in senior management plays a vital role in creating a strong company culture and inspiring future generations of female leaders. I believe companies should develop effective strategies to retain women in senior management positions, such as offering flexible work arrangements, competitive family leave, and more remote working options. Additionally, routine conversations with women about the challenges they face can improve these strategies. Companies should also invest in training opportunities for junior-level female staff members, mentorship, and professional development programs.

What are some metrics you advise using while evaluating whether to join a firm?
When considering a job, it is important to go beyond the rhetoric and do your due diligence. Ask lots of questions to make sure the company stands behind what they promote. For instance, if a company claims to value diversity, ask for concrete evidence that proves their commitment. Does their own senior management team reflect this values-driven approach? If not, understand why and gain clarity about how the organization is planning to take tangible steps going forward. Come prepared with pointed questions and share your own ideas on how DEI can be further integrated into both the firm and its investments. How the firm responds will provide you with insight into how your thoughts and ideas will be addressed should you choose to join it. Additionally, simply having a diverse team is not enough. The benefits of diversity come when differing opinions and ideas are heard, valued, and implemented. A firm that truly embraces these benefits provides a new hire the opportunity to make an impact from day one.

What policies does Locust Point put in place to support people balancing work and life – e.g., working parents, caregivers for elderly people, medically fragile people, etc.?
At Locust Point Capital, we know that our team is integral to our success. We strive to provide an environment in which employees see a realistic opportunity to spend their career with us. With that in mind, we aim to put the wellbeing of our employees first and that means ensuring that we provide a good balance between home and work. We understand that home life does not automatically turn off during working hours and recognize that family life may present employees with changes or difficulties on occasion. In addition to providing practical support, our work environment is flexible, including opportunities to work from home part of the week. We also try to cultivate an atmosphere of open communication. We realize that sometimes doctors’ appointments are only available at midday, and that a child’s softball game may be right after school. We do not want employees to miss these events, so we aim to balance workload around them instead. With these policies in place, we hope to create an environment that encourages success both in and out of the workplace for all those involved.

How do you attract people who differ – educationally, socioeconomically, racially, or by gender, among other factors – to create a well-balanced team?
DEI policies often focus on individual-level change, such as hiring and promoting more diverse candidates. However, there needs to be a greater focus on addressing and changing the systemic factors that contribute to inequality and under-representation, such as bias in hiring and promotion processes and lack of access to networks and mentoring. Engaging employees at all levels of our organization and gathering feedback allows us to continuously improve our DEI initiatives. As a result, we are in the process of expanding our internship program to provide opportunities for candidates earlier in their education to learn about our industry. We plan to institute day-long programs to introduce students to credit and asset management and allow them to ask our diverse team about our backgrounds and how we came into our current roles. We hope this will provide an opportunity for students from all backgrounds to make contacts and realize that a career in finance is achievable. Diverse employees comprise over 50% of the Locust Point team. This did not happen naturally, but was achieved through direct action by senior management.

How can diversity and inclusion policies help mitigate risk when making investment decisions?
As a member of Locust Point Capital’s Investment Committee, I welcome the unique perspectives that are obtained through different backgrounds and experiences. Such diversity can add invaluable insight when considering an investment, as it enables us to see a wider range of opportunities and potential hazards. Given our commitment to diversity, all team members at Locust Point Capital participate in our Investment Committee and we foster an open dialogue in which we value diverse opinions. By involving our team in investment decisions, we benefit from more comprehensive assessment and believe we will be better informed.

About
Rebecca Rowell is Managing Director - Portfolio Management at Locust Point Capital and is responsible for managing and monitoring portfolio investments. She has more than 16 years of accounting experience, including four years at Contemporary Healthcare Capital, LLC where she worked on six different senior housing investment funds with over $500mn in capital cumulatively. Ms. Rowell has a B.B.A with a concentration in Accounting from Emory University’s Goizueta Business School.