Stewards of capital to some extent are stewards of society through their influence on company development and workplace cultures. In more recent years, the idea of inclusivity has become more prominent across industries as shareholders, board members, and institutional capital providers came to understand the importance of including everyone, not just select groups. Not only is inclusivity an ideal most people believe in, there are tangible benefits that arise from diversity in thoughts, ideas and talents, which stem from diversity in backgrounds and experiences.
Chicago-based Madison Dearborn Partners (“MDP”) and Boston-based Silversmith Capital Partners are two leading growth investment firms that emphasize the importance of cultivating an inclusive workplace.
Madison Dearborn Partners focuses keenly on people and culture. The basis of its business is human capital – both throughout the organization as well as in its portfolio. MDP’s people are its greatest assets.
The firm’s objectives are best served when it attracts and retains the best talent, which calls for a collection of individuals with diverse perspectives and backgrounds. To help foster this approach, the firm has established internal working groups that focus on identifying and implementing strategic priorities related to its attracting and retaining firm talent, as well as building upon community outreach and volunteerism.
The culture at MDP is one of open dialogue, respectful collaboration, and collective action. In tandem, the firm is committed to creating a diverse, equitable, and inclusive work environment that supports all of its team members and encourages them to achieve their maximum potential. Madison Dearborn believes that these organizational attributes in turn foster excellence and helps it to compete more effectively and consistently in a global market.
“At Madison Dearborn Partners, we believe that companies that have a thoughtful approach to inclusivity and belonging are companies poised to deliver better results,” Elizabeth Betten, Partner and Co-Head of the Madison Dearborn Partners Healthcare team and one of this year’s recipients of GrowthCap’s Top Women Leaders in Growth Investing Award, said. “Building and retaining inclusive teams, both internally and at our portfolio companies, is necessary to provide the varied and rich perspectives which can lead to better decision-making.”
Madison Dearborn’s DE&I efforts are now reflected in the firm’s portfolio. In 2021, the firm launched MDP’s DE&I Lab for portfolio companies, which facilitates sharing of industry practices and tools for implementing DE&I initiatives to help its portfolio companies establish long-term organizational success.
The firm’s philosophy revolves around group discussions and employees coming together to work toward a common goal. The objective is to develop a welcoming work environment in which all employees feel respected and appreciated while being motivated to reach their full potential.
Madison Dearborn assesses key performance indicators in its portfolio to observe DE&I efforts and gathers the information on a yearly basis. Those performance indicators include health and safety issues, diversity in the C-suite and on the board, DE&I policies, employee involvement, staff retention, as well as mentorship and other professional development. This is not only advantageous for employees but makes Madison Dearborn a more effective investment firm as a whole.
Silversmith Partners is another leading firm that is intentional in its approach to organizational development. “At Silversmith, we foster an inclusive environment where diverse perspectives are embraced,” Julia Frenette, Operating Partner, Talent at Silversmith, and Danielle Waldman, Principal at the firm, said. “We believe that creating a space where everyone feels valued not only enables us to build the best team, but also to partner more effectively with founders and CEOs. Our commitment to inclusion strengthens our ability to support world-class companies along their growth journey.”
Both Frenette and Waldman are recipients of GrowthCap’s Top Women Leaders in Growth Investing Award for 2024. The year’s winners were chosen, out of hundreds of nominees, based on a number of factors, which include breadth of work experience, longevity in the field, demonstrated success as firm leaders, and consistent production of successful outcomes, among other factors.
Silversmith has worked earnestly to create an environment in which varied viewpoints and backgrounds are embraced. The firm’s work begins early on as recruiters make a concerted effort to seek out new employees from different backgrounds. It also consults with various organizations in order to help ensure the firm has access to more diverse candidates. Silversmith provides apprenticeships and teaches the importance of teamwork, which is vital to the firm’s goals.
New team members at Silversmith have an opportunity to work with and actively learn from the firm’s more experienced investors. Moreover, each investment professional, from analysts all the way up to managing partners, has the opportunity to be involved in the firm’s weekly Investment Committee meetings.
There is also a team-based incentive structure at Silversmith, which was established to facilitate team members working together toward a common goal instead of competing against each other. The objective is to ensure that all employees feel valued.
Silversmith has supported a variety of inclusive, team-oriented events that are driven both by the firm and its team members’ passions. This includes volunteer events, quarterly women investors’ events, recreational sports leagues, and riding in the Pan-Mass Challenge. The firm also proudly works with organizations including Him for Her, which focuses on increasing diversity on corporate boards, as well as Synergist Network, a national network of women who work in investing.
Inclusivity in the workplace is a key competitive advantage. Madison Dearborn Partners and Silversmith Capital Partners demonstrate that inclusivity, when done correctly, creates high-performance teams, enhances innovative thinking, improves the employee experience, strengthens the firm’s reputation, and cultivates a work environment where all team members can reach their full potential.
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