Do we need an all-women private capital conference?

I've been divided on the question. I'm a firm believer that men need to be part of the solution for inclusive leadership but it's not enough. Today, there are only 8% women VC investors. After attending the Women’s Private Capital Summit last week, where phenomenal North American female leaders gathered to discuss the ever-evolving landscape of private capital, I now know that these gatherings are also part of the solution. Most attendees are there with the intent to create strong bonds which is key in building any long-term professional relationship and advancing the cause for inclusion.?

The Harvard Business Review published the study of Gompers and Kovvali makes the case for why inclusion makes business sense. The study shows that venture capital firms that increased their proportion of female partner hires by 10% saw, on average, a 1.5% spike in overall fund returns each year and had 9.7% more profitable exits (an impressive figure given that only 28.8% of all VC investments have a profitable exit). (source)

The conference allowed me to meet and be inspired by incredibly bright women plus gather a few insights on how to navigate the current economic context.??

Building Long-Term Relationships and Communication?

• Amid a challenging market environment, one clear theme emerged - LPs (Limited Partners) are increasingly focused on building enduring relationships that last over time. As Michelle Scarborough, Managing Partner, Thrive Venture Fund at BDC Capital, mentioned; to build trust communication and transparency are essential.?
• Lauren Harris, Managing Director, Northleaf Capital Partners recommends to start building a relationship early to build trust, once committed, we are in this together for at least 12 years
• Sharing fluidly the good, the bad, and the ugly and not waiting last minute is an essential part of building a relationship with LPs says Senia Rapisarda, Managing Director, HarbourVest Canada.?

Resilient Investment Theses

• LPs are interested in investment theses that can withstand the test of time, even in the face of changing market dynamics. A resilient investment thesis is crucial for long-term success. Michelle Davidson, Partner Co-Head Americas Advisory at Aksia LLC, said that focusing on the aging population was a theme that made sense. (Oh Yeah!) ??

Attract and Promote Women in Leadership Positions?

• Zoey McKenzie, President Public Ventures, suggested promoting leadership at all levels and flattening the hierarchy to broaden the scope and give a chance for women to exercise their leadership early on.?
• Most of all, have the courage and dare to call things out, says Saloua Benkhouya, VP- private equity and impact investing FTQ
• A concrete example; Andree-Lise Méthot, Founder & Managing Partner, Cycle Capital has promoted a woman during her maternity leave

Collaborative Capacity Building

• The summit highlighted the importance of LPs and GPs (General Partners) working together through capacity building and knowledge sharing. This collaboration extends to aspects where LPs can offer support in areas of expertise, and vice versa, creating value on both ends and adding capacity to their set of tools.

Early Co-Investing

• LPs are interested in exploring co-investment opportunities even before the first close of a fund. This approach not only demonstrates commitment but also allows LPs to better understand the investment thesis, how the team works together, and the quality of the sourcing.?

Prioritizing liquidity / DPI

• LPs are increasingly seeking investments that prioritize cash distributions over multiples. This reflects a strategic approach to risk management in the current market conditions.?

Strong Governance and Discipline

• Brenda Hogan, Chief Investment Officer at Ontario Ventures, put a strong emphasis on Governance. Teams with robust governance structures and disciplined approaches are highly sought after by LPs. This emphasis on governance ensures transparency and accountability which is what LPs are looking for in uncertain times and markets.?
• Neha Verma, Managing Director TPG, said she wants to see how are you demonstrating discipline and rigor.?

Thank you to all participants and speakers for sharing their expertise and experiences. It was energizing to spend time with you!?