As countries around the world celebrated the International Women’s Rights Day on Sunday March 8, 2020, Emergence Team members wanted to honor women and pay tribute to their role in the finance world.
Women in finance, a great asset
An IMF study shows that a better inclusion of women among financial services users, providers and regulators has a plenty of benefits beyond reducing gender inequalities. A smaller gap between men and women would enhance the banking system stability and benefit the economic growth. It would also help establish more effective monetary and budgetary policies.
The study says that increased access and use of financial services by women can have both economic and social benefits. In Kenya, for example, business owner women with basic bank accounts invest more in their businesses. Households headed by women in Nepal spend more on education after opening a savings account.
As for the banking system, another IMF study shows that banks with more female board members have higher capital buffers, a lower proportion of nonperforming loans and greater resistance to stress.
Women, the successful dealmakers
Evidence is emerging showing that the presence of women in deal teams significantly improves performance. A conducted study by a HEC Paris professor has shown that gender-diverse PE investment committees outperformed all-male investment committees substantially. Moreover, the failure rate of gender-diverse investment committees was 8 percent lower.
Despite these findings, very few senior positions are held by women in private equity and M&A circles. A Forbes report found that in the USA, leading country in M&A activity, there was no longer a shortage of women in entry level M&A positions, but the hurdle was in moving up the chain. In fact, 40% of first and second year M&A lawyers in the US were women, but only 15% represented senior equity partners.
Yet, women as senior partners can bring more to the table than just diversity. What for sure sets women apart at the negotiating tables is their heightened emotional and social intelligence. A gross simplification of women’s attributes would be that they are more collaborative and value relationships more, they have a longer-term view and tend to strive for creating balance which can be highly valued in the M&A field.
Women at Emergence Partners
At Emergence Partners, representation is a given. It has never been something our young female professionals have fought for. Today, half our team is female and we are proud to say that throughout Emergence’s existence diversity have always been an obvious feature of ours.
As a team we value everyone’s work, we push all team members to strive as they push their limits regardless of their gender. We aspire to grow in them the desire of being the best version of themselves and we believe in the capacity of our young female professionals to become the best dealmakers in the Tunisian M&A circle.
“International Women’s Rights Day reminds us how proud we are of our female team” said Houssem Kheder, co-founder & managing partner at Emergence. “it is inspiring to see a growing proportion of female professionals in the M&A field in Tunisia, we truly believe in the great impact that diversity can have on the business”.