Gambit Search began as two leaders from two different backgrounds. We have grown as a company thanks in no small part to a long-lasting pledge to build diverse, inclusive teams, due to the many strengths that has brought us over the years.
As we enter Black History Month, we decided it would be of benefit to not only honour those who have achieved individual success, but also to demonstrate where progress overall has been made, as well as to highlight which challenges remain.
Diversity In Insolvency
A quick look over the R3 Member Survey from 2021 detailed that 9% of the insolvency profession identified as from an ethnic minority background. This is less than the 14% of the general population that identify as the same, and given that the majority of these roles are in London, significantly less than the 46% ethnic minority population of the capital (according to the 2021 census).
We’d like to compare these numbers to those from previous years, but these surveys were rarely done in years gone by. From our experience, we know that the junior ranks are becoming more reflective of the country we live in.
However, these relatively recent developments perhaps contribute to how ethnically non-diverse the industry is the higher in the chain you go: that same R3 survey shows whilst 62.5% of assistants identify as white, the overwhelming majority (93%) of all senior roles and partners do. So there are still ways to go.
There are, of course, always trailblazers. Liz Bingham OBE is a former partner at EY, current President of R3, and a vocal champion for diversity and inclusion in insolvency, and Asma Iqbal, Partner at Chadwick Lawrence LLP. Hopefully, we’ll reach a point soon where these names are not seen as exceptional for their background, but solely for their accomplishments.
Diversity in Corporate Finance
BVCA’s 2024/25 survey of diversity in the private equity and venture industry showed comparative progression: 18% of those surveyed identified as an ethnic minority. But given that London, where the majority of these firms operate, is 46% ethnic minority, that 80% of those surveyed identified as white seems like overrepresentation.
It is a similar story to insolvency when it comes to those in senior roles. A 2022 Reboot study suggested that in the finance sector, two thirds of the organisations are not diverse at a senior leadership level, and 61% are not diverse at the mid-level.
Unsurprisingly, this leads to problems. The same survey showed that non-white professionals were more than twice as likely to cite a “lack of role models in my organisation” as a factor impacting their development compared to their white counterparts.
Those role models may be sadly irregular, but we can still celebrate some here. Kamel Hothi OBE is a former executive at Lloyds Banking Group, now a board-level adviser after nearly four decades of pioneering Lloyds’ diversity efforts to help make her achievements less of an exception.
Miranda Brawn was one of the first women of colour on London’s trading floors, and used her multidisciplinary abilities in legal and financial services to become a successful banker, hedge fund sales trader, and senior lawyer. That both of these women continue to achieve and continue to remove barriers they faced is certainly worth celebrating.
How Has Change Happened
Progression often requires pressure, and we should state that improvements have been made through regulatory pressure like the Parker Review. The 2017 report set a measurable target for companies on the FTSE 250 to have at least one member of an ethnic minority background by 2024.
By the 2024 update, 70% of the companies had achieved this, meaning ethnic diversity had doubled on boards since 2016. The BVCA study of 2024/25 showed that all-white investment teams are decreasing – down to 14% in the UK. Bringing in different perspectives can only be good for the future of financial services, as our industry seeks to continue moving with the times.
The Future of Diversity In Financial Services
Sadly, as we see in society, cases of discrimination are still occurring. 6% of employees stated that they had experienced discrimination at work. And whilst financial regulators suggested stricter diversity metrics back in 2023, these have been shelved for the foreseeable future. One does not have to look far to see strong opposition to diversity outreaches, and unfortunately, we will have to keep pushing for progression.
Thankfully, there are initiatives and mentorship programmes that do great things. Black Professionals Network provides platforms and opportunities for black individuals in the workforce to network, provide placements, and help with CV and interview preparation.
In this blog, we have focused primarily on diversity among ethnicities, which is of course not the whole story. Diversity in socio-economic background, disability and LGBTQ+ is also vital. We will endeavour to go into further detail in future, but for now, we can recommend the following.
- For LGBT networks, Out Leadership and InterInvest work with employers to promote inclusivity.
- For different and disadvantaged socioeconomic backgrounds, Progress Together and UpReach are helping to influence the decision makers.
- For disability inclusion networks, there is the Business Disability Forum (BDF) and PurpleSpace which work to build disability confidence in the workplace.
All of these organisations have done great work to help shape the pathways for diversity in financial services today, and are potentially very useful support networks for individuals looking for advice in their career in finance.
If you are looking for a role, whether senior or junior, in corporate finance or insolvency, then get in touch. At Gambit Search we have over a decade of experience in matching outstanding candidates with the best roles in the market, from entry-level to leadership roles. Browse our current job openings or give us a call on 0203 633 2500.
