As long as the term has existed, “gender-lens investing” has been defined by the numbers: how much capital is flowing, how many women hold leadership roles, how many funds meet certain criteria. That data has helped legitimize the practice – GLI for short – and helped the field grow from a niche idea to a recognized investment approach.
Global public assets under management in GLI now total at least $122 billion. In private markets, more than 100 global fund managers are managing a combined $7.9 billion in gender-lens investments.
Data will no doubt continue to play an instrumental role in GLI’s growth. But metrics on reach or representation can only take us so far. The needs of investors have changed, and so has the external environment in which they are operating. Funding cuts for gender-related work loom over the ecosystem. We need data that helps us identify what is and is not working so GLI capital can go further.
The next frontier lies not in just counting women, but in listening to them. Only then will we know whether gender lens investments are truly improving women’s lives.
Counting isn’t enough
There has been tremendous evolution in the GLI ecosystem in the past decade. Frameworks like the 2X Challenge criteria and IRIS+ have helped build consensus around what qualifies as a gender lens investment.
Dalberg supported the development of the original 2X Challenge criteria; the framework was originally designed for screening investments through a gender lens. Over time, the criteria have come to be used as proxies for impact. The result is abundant data on the GLI market but limited insight into whether women’s lives are actually improving.
What listening looks like
The impact measurement company 60 Decibels is championing a lean approach to understanding women’s lived experiences so enterprises and investors can serve them better. It focuses on what’s working, what’s not, and what changes can improve impact. The approach works regardless of the role that women play in a business – as customers, suppliers, employees, leaders, and more.
60 Decibels has partnered with Global Partnerships and and their investee partner, BRAC International Microfinance, since 2019 to conduct regular client surveys. BRAC serves mostly women through its network of financial service providers in Asia and Africa, and it relies on insights from female customers for decision-making.
For example, when insights from 60 Decibels’ surveys highlighted a need for stronger financial literacy and better savings products, BRAC updated its training curriculum to address women’s specific needs. It also enhanced its savings offerings, including transactional accounts that encourage regular deposits and term deposits to help women save for specific goals.
Better data for decision-making
60 Decibels has also conducted surveys with women leaders of small businesses in the investment portfolio of Aruwa Capital Management, which itself is an investee of FSD Africa Investment’s Nyala Facility.
These surveys revealed how highly women valued non-financial partnership from their investors. Women reported that having a gender-aligned investor gave them a sense of confidence, validation, and visibility.
For Aruwa, these insights reaffirmed the importance of relational capital in addition to financial capital. They have reinforced the fund’s commitment to providing tailored support to women-led enterprises. Aruwa has stepped up its efforts to amplify its entrepreneurs’ stories, create platforms for peer connection, and advocate for their success within broader ecosystems. FSDAi is also considering the value of this support while screening possible investees.
The questions we still need to answer
As pushback on gender-focused work continues in many markets, investors are once again asking about the business and impact case for supporting GLI. Does supporting a company with significant women leadership lead to more retention of women employees? Do gender-diverse companies consistently perform better on employee satisfaction or customer loyalty among women? Which screening criteria, if any, are most predictive of downstream impact? The field is grappling with these questions, as evidenced by recent portfolio evaluations by FMO, IDB Invest, British International Investment and others, as well as updated 2X certification criteria for measuring impact.
Data is power, and listening to women turns that power into insight. By hearing directly from women affected by gender-lens investments, we can uncover what truly drives impact, what falls short, and why. This feedback doesn’t just validate outcomes; it guides smarter investment decisions and sharper gender strategies in the future. If we want to accelerate gender impact, we need the voices of women at the center of these investments.
Venu Aggarwal is a director at 60 Decibels and Rachna Saxena is a partner at Dalberg Advisors.
