Gender lens investors have gone the extra mile to build a portfolio of enterprises that create women’s economic empowerment outcomes through women’s representation in business ownership, leadership, among employees and suppliers, as well as through products and services benefitting women. Exits from equity investments in GLI funds in the emerging markets are relatively recent – giving rise to questions on how these funds can ensure that their women’s empowerment outcomes are preserved and scaled post exit. These global Principles for Responsible Exits in Gender Lens Investing have been shaped by practical insights from investors and women entrepreneurs across global markets.
Principles for responsible exits
The principles
Principle 1 / Internal
Ensure that gender is a key value driver of the company.
Incorporate a gender action plan into your standard value creation process and tie gender KPIs/milestones to the performance incentives for investees.
Principle 2 / Internal
Stand behind the female founders and leadership team.
Protect founder’s interest in the cap table, and create diversity in leadership and ownership with intentionality and manage founder/CEO transition responsibly, ensuring fair outcomes for the female founders and the leadership team at exit.
Principle 3 / External
Challenge gender biases in valuations of the female economy.
Scrutinize gender biases in valuation at entry and at exit, critically assess assumptions in valuation models with a gender lens and Advocate fair valuation of businesses in the female economy.
Principle 4 / External
Ensure buyer’s alignment at exit.
Seek out buyers who are committed to gender-smart investing and conduct due diligence with gender lens and explore ways to bring women on the cap table and consider management/ employee buyout as an option.
