SINGAPORE – A new report released by the International Finance Corporation (IFC) in partnership with the Women Entrepreneurs Finance Initiative (We-Fi) offers compelling evidence that fund managers in emerging markets can deliver stronger returns by embedding gender equality practices in both their operations and investments. The document, titled “Fund Managers Advancing Gender Equality in Private Equity and Venture Capital,” draws on real-world lessons from Fund Managers participating in IFC’s Invest2Equal program.

While much of the report’s case studies focus on Eastern Europe, Central Asia, India, Turkey, and Indonesia, the insights carry potential relevance for Asia-Pacific fund ecosystems, including Singapore and Southeast Asia more broadly.

The IFC / Invest2Equal report underscores a growing paradigm: gender equality is not just a social imperative but a strategic differentiator in private markets, especially in emerging economies. Firms that lead on gender may not only improve returns and reduce risks but also attract more capital, stronger deal flow, and better talent.

Key Findings & Evidence

  1. Better returns with balanced teams and leadership
    • Fund managers with investment teams where women account for 30–70 % of leadership roles can achieve returns up to 20 % higher. IFC
    • Portfolio companies with gender-balanced leadership often enjoy 25 % higher valuations compared to those without. IFC
    • In competitive allocations, limited partners reportedly allocate twice as much capital to funds with stronger diversity credentials. IFC
  2. Stark gender gaps persist in emerging markets
    • Across the emerging markets surveyed, only 11 % of senior investment roles in private equity and venture capital were held by women. IFC
    • Only 7 % of equity investment capital went to female entrepreneurs. IFC
  3. Commitments and progress via Invest2Equal
    • Sixteen fund managers in emerging markets joined Invest2Equal; collectively they manage over US$18 billion in assets. IFC
    • During the 18-month program, they made 62 discrete commitments to promote gender equality across firm and portfolio operations. IFC
    • At the firm level, many adopted practices such as setting targets for women’s representation, instituting anti-harassment policies, parental leave, and flexible work. IFC
    • At the portfolio level, a majority of participants applied gender criteria during due diligence, helped investees adopt gender-affirming HR policies, and in some cases developed financial products for women-led SMEs. IFC
  4. Case study highlights relevant to Southeast Asia / Asia-Pacific

Although the report does not contain a case study from Singapore, it includes one from Navis Capital Partners, a private equity firm headquartered in Southeast Asia, operating across the region:

    • Navis Capital Partners (Southeast Asia)
      Navis, which manages about US$5 billion and has a portfolio across Southeast Asia, applied the Invest2Equal learnings internally and across its portfolio. IFC

      • The firm trained over 100 employees across 15 countries in unconscious bias and inclusive workplace practices. IFC
      • Navis instituted anti-harassment policies, improved grievance mechanisms, and encouraged portfolio companies to begin disaggregating data by gender (e.g. women’s representation in senior roles). IFC
      • Within six months of pilot implementation, a subset of portfolio companies reported positive changes: new diversity policies, designation of gender champions, and regular tracking of women’s representation. IFC
      • Navis’ “Top Tips” emphasize securing buy-in by using data, creating peer-learning communities among portfolio firms, and seeking expert support to implement gender-equality policies adapted to local conditions. IFC
    • AC Ventures (Indonesia)
      This Indonesian VC firm has a strong Southeast Asia footprint. AC Ventures committed to having 40 % of its investees be women-owned or led. IFC
      Within its firm, women hold 50 % of senior leadership roles and 65 % of overall positions—a rarity among private equity/VC firms. IFC
      AC Ventures also runs workshops, sets gender action plans for its portfolio, and uses sex-disaggregated data in diligence. IFC

These examples show that in Southeast Asia, at least some leading funds are already making headway in integrating gender considerations as part of their competitive differentiator.

Relevance for Singapore and Southeast Asia

While the IFC report does not provide Singapore-specific statistics, several implications and lessons are especially pertinent to the Singapore / Asia-Pacific private equity and VC ecosystem:

  • Singapore is often a regional hub for funds investing across Southeast Asia. The approaches adopted by Navis and AC Ventures in Southeast Asia may well influence or be mirrored by Singapore-based funds investing regionally.
  • The “business case” for gender diversity highlighted in the report may resonate strongly with Singapore’s institutional investors and regulators, given that Singapore places emphasis on ESG, diversity, and governance in corporate and investment practices.
  • The tips and practices (e.g. setting quantifiable gender targets, disaggregated data, anti-harassment policies, flexible work, gender-aware due diligence) are directly applicable to Singapore funds and startups. A Singapore-based fund wishing to lead in gender-lens investing can draw lessons from this report’s recommendations.
  • Because many regional funds use Singapore as a fundraising or operational base, Singapore LPs (limited partners) could increasingly condition allocations on gender criteria, dovetailing with global ESG and diversity trends.

Challenges, Barriers, and Recommendations

The report is candid about obstacles:

  • Cultural, legal, and contextual differences complicate the rollout of uniform gender policies across markets. Local norms and labor regulations must be factored when designing harassment, parental leave, and flexibility policies. IFC
  • Some fund managers lacked baseline gender data and capacity to design metrics or benchmarks initially. IFC
  • There is risk of “tokenism” if targets are superficial or not backed by structural change and monitoring.
  • Small and early-stage companies in many emerging markets may lack maturity or capacity to adopt gender-aware HR practices immediately.

To mitigate these, the report offers a number of recommendations for fund managers:

  1. Harness data to drive change: Collect, analyze, and use sex-disaggregated metrics (e.g. hiring, promotion, board composition).
  2. Set clear goals: Define measurable, time-bound targets at firm and portfolio levels.
  3. Cultivate inclusive leadership: Ensure senior leadership visibly supports gender initiatives, embed DEI in organizational culture.
  4. Adopt tailored policies: Flexible work, family-friendly policies, anti-harassment rules, grievance mechanisms suited to local context.
  5. Promote peer learning: Encourage sharing of practices among portfolio companies, mentor networks, multi-stakeholder forums.
  6. Communicate with purpose: Use language, stories, and imagery that resonate with women’s experiences to build buy-in.
  7. Engage gender-equality experts: Bring in consultants or frameworks (e.g. 2X Criteria) to help design, benchmark, and monitor initiatives.
  8. Ensure continuous improvement: Conduct periodic reviews, benchmarking, training, and transparency to maintain momentum.