Why is it important we advance pathways for female-led fund managers? This was the question posed to our Founder and Managing Director Jennifer Buckley and Lelemba Phiri, the Founder of Africa Trust Group by Elena Haba, a Programme Manager of 2X Ignite at the recent 2X Annual Member Meeting hosted by 2X Global and European Investment Bank (EIB) in Luxembourg last week.

Where we have a private equity situation where 35% of funds raised in 1H23 went to 10 funds globally, and of this $45BN to only 3 funds, the issue the industry needs to address is how to advance the next generation of fund managers. This matters given the research that shows the potential for first time fund managers not only have a higher chance of outperforming against more established peers, they also have a lower chance of underperforming; see recent Pitchbook data published in 2021 LPs not focused on developing the next generation PE/VC firms who are funding the next generation of more inclusive and diverse entrepreneurs are missing out on the return potential of this dynamic opportunity set.

The question posed to the LPs in the audience was what they could be working on to both support the next generation of diverse fund managers as well as the investment talent who will be building these firms of the future.