The Power of Women’s Empowerment

By Makenzie Gagne ’24 Associate

In recent years, there has been a growing acknowledgment of the unrecognized potential of women entrepreneurs and the colossal value they bring to the global economy. Despite noteworthy progress in the feminist movement, women continue to face barriers to accessing capital, mentorship, and growth opportunities within the workforce. Private equity has the potential to make plays in empowering women entrepreneurs, driving economic growth, and fostering gender equality in the entrepreneurial landscape.

Research consistently demonstrates that companies with diverse leadership teams that include women are 87% more likely to make better decisions for the company in comparison to non-inclusive groups. They tend to outperform their peers in terms of financial returns and innovation. Investing in women-led ventures isn’t just about social obligations: it’s a smart business decision. Private equity firms have a unique opportunity to capitalize on this potential by actively looking for and investing in women entrepreneurs.

Despite the progress made in recent years, women entrepreneurs still face extraordinary obstacles in accessing capital, navigating male-dominated industries, and balancing professional and family responsibilities. These challenges not only hinder the success of individual women but also obstruct economic growth and innovation on a broader scale.

Private equity firms can play a transformative role in empowering women entrepreneurs through various means:

• Access to Capital: Private equity allows women entrepreneurs to access the capital they need to scale their businesses, whether through venture capital investments or growth equity funding. By investing in women-led ventures, private equity firms can help close the gender gap in early-stage funding.
• Mentoring and Networking: In addition to financial support, private equity firms can supply invaluable mentorship, guidance, and networking opportunities to women entrepreneurs. By connecting them with seasoned professionals in the space, whether they are investors, industry experts, or fellow entrepreneurs, companionship has been proven to aid work-life balance, career advancement, and pay equity. Private equity firms can help women navigate the complexities of entrepreneurship and accelerate their growth trajectories by fostering an environment that encourages these types of relationships.
• Capacity Building: Private equity investors can also support women entrepreneurs by providing resources to build capacity, such as leadership development programs, access to talent pools, and operational expertise. By equipping women-led ventures with the necessary skills and resources, private equity firms can improve their chances of long-term and sustainable success.

Around the world, there are countless success stories of women entrepreneurs who have thrived with the support of private equity investment, with companies such as Fenty X, ActOne Group, or BioCon receiving millions in funding over the past decade. From revolutionary biotech startups to sustainable packaging brands, women-led ventures are disrupting the status quo in diverse industries, driving innovation, creating jobs, and generating positive social and economic impact.

Empowering women entrepreneurs is more than just a moral obligation: it’s a strategic investment in a more inclusive, equitable, and prosperous future. Private equity firms have a unique opportunity to drive meaningful change by investing in women-led ventures, unlocking their full potential, and reshaping the entrepreneurial landscape for future generations.

Makenzie is a senior from Londonderry, NH with a dual major in Finance and Sustainability. This is her fifth semester in the Fund. Throughout her time with the fund thus far, she has dedicated her time to work with associates on integrating sustainability into our due diligence analysis. One of her favorite takeaways from her experience with Rines has been working among talented peers to gain firsthand experience and knowledge of private equity investments. She is actively involved on campus as the President of Alpha Kappa Psi, the professional business fraternity, the Vice President of the Rutman Leadership Fellowship, and an alumnus of The Sustainability Fellowship.