Attracting diversity, new talent, and ambitious young professionals to alternative investment

Investors, fund managers, and professional advisors are keen to broaden their talent bases, bring in different perspectives, and improve business effectiveness. There are a number of initiatives around the world to increase the diversity of young professionals recruited into the alternative investment industry.

SEO London (the UK arm of US-based Sponsors for Educational Opportunity) has supported more than 10,000 young people from under-served and under-represented backgrounds to access career opportunities. The charity’s sponsor firms in private equity include Goldman Sachs Asset Management, KKR, Advent International, Apax Partners, Clayton Dubilier & Rice, Cinven, CVC, Hayfin, and TA Associates.

Chief executive Nathalie Richards spoke with Shaun Beaney, Editor of Preqin First Close, about SEO London’s free professional skills development, training, internships, and employment support, as well as its new program in Paris.

What does SEO London do?
We’re a UK-based charity that helps under-represented and under-served students and young people to achieve career success in elite sectors. We cover investment banking, asset management, consulting, insurance, technology, law, and corporates, as well as, more recently, alternative investment – predominantly private equity.

This is a fantastic year for us because SEO is turning 60 years old as a global organization. We were founded in 1963 during the US civil rights movement and have helped thousands of under-represented students to succeed on Wall Street and beyond. One of the alumni arrived in London in 2000 and felt that it would be great to bring some of the magic of the SEO model to the UK. Since then, we’ve helped over 10,000 young people here.

What’s meant by ‘under-served and under-represented’?
We target young people who have historically faced barriers or limited access to resources, opportunities, and representation. These groups are typically marginalized or discriminated against and, without our help, would struggle to succeed. There’s a lack of representation and therefore relatable role models. In the UK context, the groups we serve fall into one of two categories: those from an ethnic minority background; or those from a low-income background.

Is gender also important, in terms of the intake of young women into SEO London’s programs?
Absolutely! We appreciate that there’s also a massive under-representation in terms of women in elite careers, specifically in financial services. So, we seek to get as close to an equal gender balance as we can in our programs. Currently, we have approximately 45% female participants.

What services do you provide to candidates?
In simple terms, we connect talent with opportunity. We tackle a few areas. First, there’s a lack of knowledge about what’s out there. We’re helping to broaden candidates’ horizons about all the different sectors and opportunities available to them. 

Second, we help them understand the different pathways, the selection processes, such as if there’s an assessment center or case study, how to interview well, how to present well, and how to write a great CV. We also help them to understand the unwritten rules and expectations in the corporate space.

The third piece is ‘will they want me?’ This is really important. That’s where our access to visible role models, our coaching, and our insight days really reinforce that these individuals are talented, and that their talent is recognized and very much sought after. Employer organizations appreciate that candidates have skills and perspectives that will be valuable.

What have been your biggest successes since you joined as CEO in May 2022?
We’re currently helping close to 4,000 young people on one or more of our programs. We now have a finance program in Paris as well, where we have 100 participants about to start on their journey with us. Our conversion rates of internships to full-time offers tend to fluctuate between about 70% and 90%, depending on the program. That’s something we’re incredibly proud of.

What’s behind your push into alternative investment?
Private equity tends to draw its talent pool from finance, investment banking, and consulting. Already, they’re recruiting from a relatively un-diverse pool, and as a consequence, the sector has been incredibly un-diverse. 

In the wake of George Floyd protests in 2020, many of our supporters in private equity firms came to us and said: ‘We want to be part of the solution. Wouldn’t it be great for us to do something in Europe where we know that some of these challenges also exist?' So, the idea of our Alternative Investments Program was born.

What does the program do?
We’re now supporting around 40 partner firms and have ten work streams. We help school students, we help university students, we help recent graduates, all from diverse and under-represented backgrounds, who might never have thought about a career in private equity. We’re also trying to help the broader ecosystem, end-to-end, LPs as well as GPs, and some of the other partners, so that we can have a wider impact.

How do firms and individuals in alternative investments work with SEO London to help young people?
There are many ways to get involved. The first is mentoring. You can make such a difference in a young person’s life with just an hour of online support each month for six months. That opportunity to speak to somebody who’s living and breathing a career in private equity every day is invaluable. We’d love to have more mentors and people with powerful networks. You don’t have to be from a diverse background, just someone who’s keen to give back and make a difference. The second is that we’re a charity and we’re always looking for funding so we can help more young people and provide deeper support for our participants. Another is if your firm has internship or work-placement opportunities. Providing resources and learning materials would also be very helpful. And you can also sponsor events and programs.

Shaun Beaney is Editor of Preqin First Close, the essential daily newsletter for the global alternatives assets industry. It’s quick, easy, and free to subscribe here. 

If you’re interested in a career in alternative investments, take a look at the free resources we’ve provided in the Preqin Academy about private equity, venture capital, private debt, hedge funds, real estate, infrastructure, and natural resources. Read our December 2023 interview with Nathalie here.