Transforming Capital for the Next Era 2025

The same dynamics extend beyond early-stage venture capital to later-stage private equity, where investors often gain control of more mature businesses. Evidence from private equity-backed companies also reveals persistent gender gaps. Compared with public companies, private equity- backed firms are considerably more likely to have no female directors. In the US, women hold just 17% of board seats among private companies that have raised at least $100 million – below the share observed in listed firms on the S&P 500 or Russell 3000. Moreover, women in these firms are more often appointed as independent directors rather than as executive or investor directors – roles more directly tied to funding and strategic decision- making. This distinction limits opportunities to bring cognitive diversity into the boardroom, even as companies increasingly recognize the value of broad perspectives.13 Similar patterns appear in middle-income markets: in every region except South Asia, women hold a smaller share of decision-making roles in private equity-backed companies than in their publicly listed counterparts.14 Evidence from Europe reinforces this picture. Another study of private equity-backed companies found that women’s representation on boards and in leadership actually declined following investment; in a European sample, the share of female leaders fell from around 20% pre-investment to 15% by exit.15 Transforming Capital for the Next Era: Gender Parity and the Expansion of the Investable Frontier 12