Gender Lens in Focus: Advancing Global Impact and Measuring Progress
Gender lens investing in private markets has defi ed headwinds, achieving a robust growth rate of over 30% between 2021 and 2023. This expansion is highlighted in the latest research, Project Catalyst, by 2x Global and Sagana, which showcases the collective eff orts of fund managers, Advance Global Capital included, to drive more financing towards women.
Since 2018, AGC has consistently monitored and reported on gender equity throughout our value chain. Specifi cally, during the growth period highlighted by Project Catalyst, we observed fl uctuating gender equity outcomes among our partners and SMEs. For example, our metrics show variations in female ownership, leadership, and employment indicating that while progress towards achieving gender equity is not linear, it is ever changing and our role in intentional gender integration is critical for data-informed decision-making, a key theme also echoed throughout the research.
Earlier in 2024, we announced our pledge to continue our mission of investing in women’s economic empowerment as part of the 2x Challenge and revealed in our latest impact report , steady progress on our initiatives for key gender metrics. Notably, over half, 51%, of our financing partners and 44% of SMEs were led by women. This was further refl ected within their workforce composition, with 55% of partner employees and 42% of SME employees being women. Project Catalyst observes that fund managers have varying interpretations of what constitutes regular tracking and reporting of gender metrics. Majority of the participating funds, 87%, pursue gender strategies by measuring the leadership composition of business owners. 78% pursue targeting women’s involvement in the workforce.
A smaller proportion of fund objectives sees 32% of fund managers targeting gender strategies by investments through fi nancial intermediaries. Our fund strategy, which addresses multiple gender objectives, has proven crucial to our mission of achieving meaningful impact in the long term. We recognize that each level of gender equity is interconnected and essential if we want to drive lasting change. Project Catalyst further cites how one third of funds surveyed reported similar attitudes, indicating the value in expanding the scope of strategic gender lens practices.
Gender lens has proven its value in our investment practices as we target SMEs and partners that are women-led and continue to track, measure and report the outcomes of our financing. Similarly, we recognize the importance of applying the same principles of gender lens into our organizational composition, as we continue to see how its value can be leveraged to enhance the performance of our fund.
During the 2X Global Annual Member meeting in Nairobi, attended by our Co-CEO Sudha Bharadia, the benefits of gender diversity in corporate leadership were clear indicators that fund managers with female CEOs or chairs, and those with more than 20% women on their boards or more than 25% women in management, demonstrate higher returns and reduced risk. We’ve consistently attracted global investor interest, driven by our nine-year track record of delivering strong financial returns alongside meaningful social impact. Reinforced by Project Catalyst’s research, the positive correlation shown between fund manager team diversity and portfolio performance, indicates that diverse funds are more likely to outperform less diverse counterparts and as a result, present a compelling opportunity for investors.
Additional takeaways from the Project Catalyst research focus on gender equity initiatives that address investing in challenging sectors. The report identifies knowledge sharing opportunities as a key Call to Action, one which recommends the development of case study sources to showcase best practices in gender equity within sectors lacking gender lens. An essential element of our impact strategy has been our focus on showcasing and producing stories and videos that highlight our SMEs . While these businesses’ stories are shaped by their regional context, they yield distinct and shared experiences that highlight the complexities of gender lens, the main issues often being, women’s barriers to capital, entrepreneurship and their experience in male-dominated sectors.
From further findings in our latest impact report, our top sectors included construction & engineering, transportation, professional services, retailing and information technology; some of which Project Catalyst cites as challenging industries fund managers should integrate gender lens considerations into to continue addressing the gaps in these sectors. We are confident in our position in the practice of gender lens investing. The key findings in Project Catalyst have reaffirmed that whilst progress throughout private markets remains to be made, our unwavering commitment to gender lens practices continues to drive meaningful impact. Our advancements in our key gender metrics and measurement will continue to be at the forefront of how we evaluate opportunity, inform decision making, and transform the lives of women worldwide.
Alignment to Global Sustainability Standards
We are closely aligned with United Nations Sustainability Goals 5, 8, 9 and 10
Latest: 2023 Impact Report
Our seventh annual impact report summarizes how we have been utilizing capital to benefit our valued investors, partners, and local communities across the globe. Our comprehensive report examines the outcomes and achievements of our commitment to driving positive change and empowering small businesses.
