The landscape of alternative investments is undergoing a significant transformation thanks to women. With rising wealth, enhanced financial know-how, and new platforms at their fingertips, they are not just investing more but also redefining success in the alternative investments sphere. It’s evident that women are leaving a strong imprint on this sector’s future.
This article is the second part of an insightful series exploring the role of women in alternative investing, drawing perspectives from over 50 global finance leaders. Here, you’ll find key highlights and carefully curated quotes that shed light on this dynamic.
Delving into the topic of women and alternative investments reveals a tapestry woven with threads of economics, monetary policies, regulatory climates, politics, and culture, particularly a "money culture" that varies across regions. The following insights bring this diverse background into focus.
Women’s Wealth Is Growing. So Is Their Need for Financial Fluency
The generational wealth transfer is gathering pace, placing women front and center. As women live longer, inherit assets, and take charge of their financial journeys, their role becomes pivotal. Alicia Syrett, CEO of Pantegrion Capital and Founder of Madam Chair, remarked, "Women are earning more for their families and increasingly managing their finances."
Caroline Miller, a corporate director from Montreal, highlighted the shift from child-rearing to managing costs associated with aging parents: “Their goal isn’t just financial literacy, it’s financial fluency.” This evolution heralds a new breed of female investors tackling complex financial terrains with confidence and foresight.
New Platforms and Tokenization: A Boon for Women
The digital revolution has opened doors to alternative investments, making them more accessible. Sofia Beckman, Co-Founder of North House, explained how fintech innovations simplify investments for retail investors. Diana Biggs, Partner at 1kx, emphasized the impact of tokenization, describing it as a game-changer that breaks barriers and encourages female participation in private equity.
In Israel, Chairperson Hanna Pri-Zan noted a climb from 30% to 42% in women-owned securities accounts since 2010, thanks to easier digital setups. Platforms like Moonfare and Crowdcube are also making private equity attainable for everyday investors, as Callum Woodcock from WineFi pointed out.
Healthcare Is the #1 Sector of Interest
With firsthand insights into gaps in healthcare, women are gravitating toward HealthTech and FemTech. According to Alice Tang of MA Asset Management, women know to focus on health and wellness sectors. Charlotte Beyer of Quest Foundation shared her excitement about investing in ventures like a male birth control pill, noting women’s drive for innovation.
Anna Pearson of Harriet underscored the financial challenges FemTech faces despite its potential growth to $60 billion by 2027.
Investing Culture
Cultural elements significantly affect women’s engagement with alternative investments. In traditionally male-dominated settings like Switzerland, women may approach investments cautiously, while in places like Singapore, gender parity is more evident. Turkish women, as Metin Aslantaş of Deloitte said, focus on less-risky investments and often outperform men over time.
JoAnn Fan from Cheng-An Investment Company in Taipei noted how women’s roles as second-generation business leaders emphasize their involvement with alternative assets.
Regulatory Frameworks and Policies
Regulatory landscapes shape alternative investment accessibility. Anna Jonsson of Storebrand Asset Management pointed out the exhaustive processes required by strict regulations, which may deter potential investors. In contrast, Hansi Mehrotra in India mentioned the appeal of gold bonds for conservative investors. Australia’s superannuation system also fosters accessible, low-fee investments, as noted by Anna Shelley from AMP.
Geopolitics and Alternative Investments
Geopolitical factors play a part in influencing investment trends. Olga Burenko from Dragon Capital spoke about investing in war memorabilia in Ukraine, while Nora Laurinaityte from INVEGA emphasized the practical aspects of defense tech in Lithuania.
Pension Systems and Tax Policies
Pension systems and tax policies considerably influence women’s investment habits. In Amsterdam, Judith Sanders observed that current pension frameworks reduce private capital needs, although these dynamics may shift as social costs increase. Meanwhile, in Eastern Europe, tax-incentivized plans are prompting long-term investments.
Lack of Alternatives in Some Regions
In cash-centric regions like Japan and China, the conservative mindset poses hurdles for alternative investments. Stephanie Leung of StashAway noted the high percentage of wealth tied up in cash compared to other parts of the world, highlighting the need for better financial education. Keiko Sydenham from LUCA Japan Co. lamented the low financial literacy and awareness of investment alternatives.
Societal Shifts
The rise of women in alternative investments marks more than a financial trend; it signals a societal shift. By gaining greater access to wealth and innovative platforms, women are not merely breaking barriers—they are paving the way for a future where the investment landscape mirrors the diverse needs of our changing world. Their involvement catalyzes opportunities and drives innovation, underscoring the increasingly influential role of women in alternative investments. The industry is undoubtedly enriched by this transformation.
For a detailed exploration of this topic, reference the “Women & Alts: A Global Perspective” white paper for comprehensive insights from my interviews over the summer.
