RCP’s Research Finds Diverse Managers Have Historically Generated Attractive Adjusted Risk / Return Profiles Within Middle Market Private Equity

Rhea-AI Summary

RCP Advisors has released a new research report titled Diversity and Financial Outperformance in Middle Market PE, which analyzes the performance of minority, women, veteran, and disabled majority-owned private equity firms. The report indicates that these diverse managers often generate higher returns with less risk compared to their non-diverse counterparts. Using proprietary data from GPScout, the report shows a trend of superior performance among diverse managers, suggesting that DEI-focused investing is both a moral and prudent financial decision.

Positive

• Diverse private equity managers generate higher returns with less risk.
• The DEI Research Report highlights financial outperformance in lower middle market investing.
• Proprietary data supports the trend of diverse managers consistently exceeding market performance.

Negative

• None.

CHICAGO, March 16, 2022 (GLOBE NEWSWIRE) -- RCP Advisors (“RCP”), an independent sponsor of private equity funds-of-funds, secondary funds, and co-investment funds focused on North American lower middle market buyouts, is pleased to announce the completion of its proprietary Diversity, Equity, and Inclusion (“DEI”) Research Report - Diversity and Financial Outperformance in Middle Market PE. The DEI Research Report hones-in on multiple analyses of minority, women, veteran, and disabled majority-owned North American lower middle market private equity firms and illustrates how and why this cohort of managers have outperformed the broader market.

The moral imperative for investors to pursue DEI investing aside, the DEI Research Report found that diverse private equity managers in the lower middle market generate alpha, often with less risk than non-diverse managers. The first half of the report is a compilation of key takeaways from a multitude of DEI-focused research, highlighting private equity financial outperformance and deciphering potential reasonings why diverse managers have historically achieved superior returns. The second half of the report uses RCP’s proprietary database, GPScout, to confirm that diverse managers in the lower middle market have a higher propensity to generate returns that meet or exceed the broader market, often doing so with less downside dispersion. The report also examines the various characteristics of diverse managers and performance of underlying deals invested-in by diverse-owned funds.

“We are encouraged by this research -- not only is DEI investing the right thing to do, but it is also a prudent decision and deserves allocation in all investment portfolios,” said Mary Hunt, Portfolio Manager of RCP’s DEI-focused strategy.

The research utilized in this report was conducted by RPM, RCP’s Research, Performance, and Monitoring Team and led by Mary Hunt. As previously mentioned, the data used in the analysis was compiled using GPScout, which consists of over 2,900 private equity firms, 5,000 private equity funds, 35,000 portfolio companies with ROIC metrics, and 190,000 unique entries relating to different private equity metrics.

Please reach out to Mary Hunt (mhunt@rcpadvisors.com) and Alex Williams (awilliams@rcpadvisors.com) for access to the RCP DEI Research Report.

About RCP Advisors
Founded in 2001, RCP Advisors, a subsidiary of P10, Inc. (NYSE: PX), is a private equity investment firm that provides access to lower middle market private equity fund managers through funds-of-funds, secondary funds, and co-investment funds. Additionally, RCP Advisors provides advisory and research services. With over $11.4 billion in committed capital and 50 full-time professionals as of March 16, 2022, RCP believes that it is one of the largest fund sponsors focused on the lower middle market segment of the North American private equity market.

Media Contact:
Chris Bradley
Director, Marketing and Communications
RCP Advisors
353 N. Clark Street, Suite 3500
Chicago, IL 60654
312.229.4149
cbradley@rcpadvisors.com
www.rcpadvisors.com

FAQ

What does the RCP Advisors DEI Research Report focus on?

The report examines the performance of diverse private equity managers in the lower middle market.

When was the RCP Advisors DEI Research Report published?

The report was released on March 16, 2022.

What are the key findings of the DEI Research Report by RCP Advisors?

The report finds that diverse managers generate higher returns with less risk compared to non-diverse managers.

How many private equity firms were analyzed in the RCP Advisors report?

The analysis involved over 2,900 private equity firms.

What is the stock symbol for RCP Advisors' parent company?

The parent company, P10, is listed under the stock symbol PX.