This is a relationship game

According to Georgina Varley Managing Director of Adamantem Capital, building long term relationships with business owners and their leadership teams across a range of industries is a cornerstone of PE investing. Unlike investment banking where your involvement with the company ends when the deal is done, private equity managers typically hold board seats in the company and have ongoing strategic input into the growth and success of the business.

Studies show women are more likely than men to prioritise relationship building at work. And when I talk to women about what attracts them to funds management, they’re often drawn to the more tangible asset classes like property and infrastructure, as opposed to equities and fixed income. The parallels to the hands-on world of PE and VC are apparent.

Given investment banking is the typical pathway into PE, and investment banks have been achieving gender balance in their grad programs for a decade, there really is no good reason why these funds can’t attract more women.

More women than ever are starting their own businesses

The female entrepreneurial spirit is strong in Australia, with women owning 30% of small businesses and founding two-thirds of all new businesses over the past decade. I recognise many of these businesses are not built for scale (eg cafes or hairdressers), however a growing number of women are building startups to scale up. According to a report by Startup Muster, women made up 24.5% of all startup founders in Australia in 2020, up from 23.5% in 2019. While this figure does not specifically address the proportion of female-led scale-ups, it does suggest that there is a significant number of women involved in founding and running startups in Australia.

Jackie Vullinghs, Partner of venture capital firm Airtree, explained a passion for growing businesses is the hallmark of a great VC manager.

Unlike PE managers who are investing $50-100 million at a time, VC investors are at the smaller end of the spectrum, focusing on start-ups and young businesses that show long-term growth potential. Often just two people with a great idea. Vullinghs believes many of those savvy young women who are backing themselves in their own business would make great VC investors. Add innate curiosity and a nose for sniffing out the next industry disrupter, and you have yourself an extraordinary career.

You can own your calendar

Despite perceptions about a work-intensive culture that is not conducive to primary carers with families, Vullinghs highlighted how flexible the sector can be for parents, herself a mother of young children, as you “own your own calendar” and can set the agenda. It helps that her leadership peers also prioritise time with family, creating a culture that recognises and respects life demands and professional passions.

When there’s a will, there’s a way

If there was any doubt that gender parity in PE and VC is possible, look no further than Dr Michelle Deaker, Managing Partner of OneVentures. Deaker was one of the first women in Australia to launch a venture capital firm, and has been a long-time advocate for women in the industry. She believes diversity of thought drives the best thinking and ultimately top performance. This is evident in her own firm, OneVentures, which has gender parity across all levels and is one of Australia’s largest VC firms with $800 million assets under management.

Like Future IM/Pact, Michelle is passionate about women succeeding in this career and last year joined forces with two other female-led firms to form WinVC, a non-profit initiative focused on supporting the career trajectory of women investors.

Our event co-host, Tattarang, the private investment group of Andrew and Nicola Forrest, is another superb example of industry leaders who are putting their money where their mouth is. Investment Manager, Michelle Hepworth, who was also on the panel, shared Tattarang’s commitment to supporting women across the industry. Tattarang recently became one of the biggest backers of start-up accelerator Startmate, citing its efforts to increase participation of female entrepreneurs as the key reason for investment.

Who’s willing?

These extraordinary women show what is possible when women play a leading part in recruiting and retaining great talent. They prioritise recruiting amazing female investors, backing their potential and creating the environment where everyone can do their best work.

This is the mission of Future IM/Pact. We’re curating a talent pool of future female investors and supporting industry to develop the leaders and culture that bring out the best in their people. Private equity and venture capital firms who are curious to learn more are welcome to contact me and find out how we can support their shared ambition to do the same.