Women account for just 15% of partners in hedge funds, private equity and other Financial Services partnerships. In the eve of International Women’s Day we are reminded of the lack of women in leadership and ownership in the Financial Services (FS) sector…
Women represent just 15.3% of partners in hedge funds, private equity and other financial services partnerships in the UK. The number is virtually unchanged from the previous yearโs 15.4%, according to new data from Fox & Partners, the specialist employment and partnership law firm.
Research from Fox & Partners shows that only 794 women were partners at hedge funds, private equity firms and other financial services partnerships, compared to 4,411 male partners*.
Men rule and govern the entry to the sector making gender disparity in Financial Services hard to balance
Financial services partnerships, including hedge funds and private equity, fall behind the wider UK financial services sector on female representation in senior roles.
Previous study from Fox & Partners shows that women hold 18.6% of senior leadership roles across UK financial services businesses, compared with just 15.3% of partners at partnership firms.**
Says Catriona Watt, Partner at Fox & Partners: โThere seems to have been very little progress in gender diversity within these firms over the last two years.โ
โOne reason may be the pushback against DEI policies, since the election of Donald Trump, is going to see progress continue to slow or even reverse.โ
โWhilst the UK and European arms of global financial services firms are not subject to the same kind of pressure as they are in the US, it is hard to argue that the current US Government has created a helpful DEI environment for UK FS businesses.โ
The US shows great results after putting more pressure on improving gender disparity in financial services
Catriona Watt says that private equity and hedge fund firms had been under growing pressure to show real commitment to gender diversity from institutional investors. Diversity statistics were being used to influence investment decisions, and firms with poor track records risked losing out.
The New York City retirement system provides a clear example of how increasingย diversity in investment management can deliver strong performance outcomes. The retirement fund, which serves 800,000 beneficiaries, increased itโs exposure to minority and women-led asset management firms between 2022 and 2024. The assets under management have increased from $16.8 billion in 2022 to over $23 billion in 2024.
For FY23-24 the fund achieved a combined net return of 10%, surpassing the 7% actuarial target, with The NYC Comptroller, Brad Lander, identifying increased investment in diverse and emerging managers as a key contributor to this performance.***
Historically, however, hedge funds and private equity firms have not faced the same levels of external scrutiny on diversity as publicly listed financial service companies such as large banks. Watt notes this could be one of the reasons for slow progress, and questions whether the lack of scrutiny has delayed reforms.
Women partners as a percentage of all partners in the financial sector shows no improvement
Catriona Watt warns that the slowdown in the pace of change could lead to more equal pay and discrimination disputes.
Catriona explains: โIf firms fail to make progress, they not only increase the risk of legal claims but also reinforce a cycle where women are discouraged from pursuing leadership roles in these environments.โ
Watt adds โAt the current rate, gender parity among partners could still be decades away. Leadership must keep working if they want meaningful progress โ especially in this period when some employers might be nervous about highlighting their DEI efforts.โ
Fox & Partners suggests a number of actions firms can take to balance gender disparity in financial services
- Launching mentoring or championing initiatives to support women progressing into senior roles
- Ensuring structures within FS partnerships provide an environment where women can thrive
- Ensuring leadership visibly supports diversity and embeds it throughout the organisation, including messaging from the top
- Signing public commitments such as Level 20 or the Treasuryโs Women in Finance Charter
* Data provided by the FCA with year-end 31 July 2025
** Data provided by the FCA with year-end 25 October 2024 covering senior executive roles such as CEOs, Executive Directors, Chief Risk Officers through to non-exec roles such as Senior Independent Director.
*** Data obtained from the MWBE and Emerging Manager Pension Investments, Fiscal Year 2024 report.
About Fox & Partners
Fox & Partnersย is a leading specialist employment and partnership law firm based in the City of London, described by Chambers & Partners directory as “a small but perfectly formed boutique with an amazing range of knowledge.”ย Lawyers at Fox & Partnersย collectively have decades of experience resolving high profile and sensitive issues involving partners, employers and employees.
Offering risk-based contentious and non-contentious advice, our legal expertise includes partnership, employment, litigation and dispute resolution, regulation, discrimination, redundancy and whistleblowing. We act for a wide range of clients including companies, partnerships, LLPs and high net worth individualsย who work within a range of sectors, including professional and financial services.
Fox & Partners is recognised as a leader in its field by both Chambers & Partners and Legal 500. The firm is described in Legal 500 as a โhighly focused boutique” with “a very commercial and practical partnership team.”
