Women in Private Market Investment: Breaking Barriers with Selma Peters

The private market investment industry has long been dominated by men, but women are steadily carving out their space, reshaping the landscape and enacting change.

But despite notable advancements, the numbers show that progress remains slow in some areas.

The tools for change are readily available, yet the momentum to achieve lasting gender parity in private markets seems to lag.

This raises the question: what structural barriers persist, and how can the industry take meaningful steps to dismantle them?

At the moment, it seems like there is much work to do.

For example, the European Commission reported last year that progress in Europe has been slow, with the gender pay gap shrinking by only three percentage points since 2014.

McKinsey's 2023 Global Private Markets Review reports that women now hold 48% of entry-level roles in private equity investment, bringing the industry close to achieving gender parity at this level.

That’s great news.

However, women remain significantly underrepresented in private equity leadership, holding only 20% of managing director positions.

Selma Peters is one of many people working to accelerate and make change.

As an investment analyst at amberra and community relations manager at European Women in VC, Peters is bridging the gap between personal ambition and collective progress.

On one hand, she’s carving her own path in the industry; on the other, she’s tearing down barriers for the women following in her footsteps.

Building a Career in Private Markets

At amberra, Selma Peters plays a key role in shaping investment strategies.

The firm’s fund targets property tech, digital health, sustainability, and SME-focused B2B solutions.

Using her expertise, Selma helps position amberra as a player in Series A funding, while offering startups access to the network of a German banking group.

She acknowledges that her journey to where she is today hasn’t been without its challenges.

Shifting the Culture of Male-Dominated Teams

Being the only woman on an investment team comes with unique experiences, Peters explains.

While her current workplace champions inclusivity, some earlier roles exposed her to hurdles that still persist across the industry.

“I've been in different roles in private equity, venture capital, but also, for example, in investment banking. I really enjoyed my job,” she says of her past career experiences.

“But I had to listen to a lot of comments that were quite misogynistic. And this kind of also took away my private motivation to stay in this industry and a lot of women still suffer from such experiences.

“If it’s a really male dominated team or field, it feels almost toxic to be a woman.”

So how does the current landscape compare to then, when Selma was first starting out?

“I think we (the industry) have been improving and a lot of companies, not only in the private equity sector, have put more effort into creating a more diverse workspace.

“This is especially because there also has been a lot of research and data that show more diverse teams also lead to higher returns.”

It’s true. A recent survey published by European Women in VC found that 87% of VCs and LPs believe increased diversity leads to better investment decisions and financial returns.

Furthermore, a 2019 International Finance Corporation report found gender-balanced investment teams in private equity and venture capital delivered 10%-20% higher returns.

However, Selma points out that some companies fall short of their promises to support women: “I think the issue is still that many companies or employers are not super authentic about wanting to create change. 

“They do a lot of ‘pinkwashing’. Like in their marketing messages they try to be positioned as an employer that encourages more women to apply but often the reality looks different.”

The Importance of Diversity

The term “glass ceiling,” coined decades ago by management consultant Marilyn Loden in 1978, still resonates today. 

Despite advances, significant gaps remain, especially at senior levels even though research has long established the benefits of diverse teams.

Gender-balanced teams can not only create more innovative decision-making but also achieve higher financial returns. Studies show as much as a 10-20% increase. 

Peters attributes gaps in progress to two key factors: inflexible work environments and entrenched biases.

She believes that in some cases the industry’s structure doesn’t always support those who prioritize work-life balance.

And networks in private markets can also feel closed, often favoring those who already mirror the predominantly male leadership.

“I mean generally, as humans, we’re naturally drawn to people who are similar to us. So it’s easier as a woman to be overlooked (in a male dominated field) or not be taken as seriously,” she says.

“I also think some people have to be more aware about biases. At European Women VC, we published a report three years ago on the gender balance in venture capital and projects.

“One issue that always seemed to occur was, for example, that women were hired into senior positions or even promoted into senior positions.

"But if you look into their like monetary incentivization, they didn't get as much of a bonus, even though they were on the same level as their male partners.

"So you have to make women an equal partner in these types of companies.”

Smashing the Glass Ceiling

Through her work at European Women in VC, Peters advocates for systemic change from the top down.

The organization’s mission is to increase the number of women in decision-making roles in private markets.

Selma makes it clear that bringing men onboard with their initiative is also key to success.

European Women in VC initiatives tend to focus on three areas:

1. Awareness and Data: Publishing reports to highlight disparities, such as unequal bonus structures for women in senior roles.
2. Access: Connecting female GPs with LPs and advocating for greater openness toward emerging managers.
3. Community Building: Creating inclusive networks that bring men into the conversation as allies.

“Our belief is to change the capital flow top-down. We think there are already on the founder level a lot of good mentoring programs or acceleration programs to empower underrepresented founders,” Selma explains.

“But to have a long-term systematic change in this field, we need to have more diverse decision-makers. Because if you have a woman deciding about capital, it's more likely they will also invest in female-led companies, for example.”

This could mean greater input into areas like female health, which remains underfunded despite its relevance to half the global population.

It’s true and recent data backs it up.

For example, a study by the Kauffman Fellows found that venture capital firms with female partners are twice as likely to invest in companies with women on the management team and three times more likely to invest in female CEOs.

“We don’t want to create girls clubs but we think it’s also important for women at a leadership level to have spaces to exchange. And we don’t want to create silos where we exclude men. We also want men to be on board with our vision and initiatives,” she adds. 

Breaking In and Standing Out

For women looking to enter private markets, Peters offers clear advice:

• Build Relationships: Networking is essential in this people-driven industry. She highlights Included VC, baby vc, and Venture Forward as great community programs.
  
  
• Self-Branding: Stand out by showcasing your unique perspective. Peters herself used an Instagram blog to share insights on venture capital.
  
  
• Find Mentors: Role models provide guidance and inspiration.
  
  
• Stay Authentic: While navigating male-dominated spaces may be necessary, maintaining your individuality will help find the right workplace.

On the topic of the importance of female GPs and LPs building connections, she emphasizes that building new relationships is essential for increasing transparency and opening up opportunities within the industry.

“I think it makes a lot of sense to try to connect more GPs and LPs.

"Even if you’ve been part of the venture capital forum for a long time, figuring out how to start your own fund or identifying the right point of contact can be difficult.

“For instance, there are well-known institutions like KfW in Germany, which has a fund-of-funds program.

"But there are also many lesser-known entities, such as corporate-specific initiatives or family offices, that aren’t highly visible. Some of these don’t even have a website.

“It’s crucial for LPs to broaden their approach. By sticking to familiar circles, they miss out on uncovering untapped potential. Expanding their view could lead to funding more innovative or unconventional ventures.

“From the GPs' perspective, connecting with LPs not only increases transparency but also helps manage expectations.”

Signs of Progress in Private Markets

Overall and despite the ongoing challenges, Selma sees gradual but meaningful progress.

“I have the feeling that leaders today, especially men, are more aware of this topic of female empowerment and the discrimination that women can experience in the workplace.”

She also observes that her male colleagues are aware of potential bias.

“For example at amberra, I’m the only woman in the investment team and my boss always communicates with me.

"He says that if I ever have the feeling that things turn into a boys club, to let him know. I’ve never had to tell them to stop doing something because they’re already well aware."

While barriers remain, Peters is optimistic about the future.

“I see more female role models for myself in the space and I think it's also great that people are more accountable for their behaviors.”

Building a Gender-Equal Future in Private Markets

Looking ahead, achieving gender parity in private markets will likely hinge on ongoing education and further research.

Alongside Women in VC are organizations like Level 20, a not-for-profit organization dedicated to improving gender diversity in the private equity industry.

Their reports indicate progress in female representation within the sector, though they emphasize that significant work remains to achieve parity.

Adding to this momentum is Sinefine, a women-led venture platform founded in 2022 in Columbus, Ohio.

Connecting limited partners with top-tier, women-led firms, Sinefine exemplifies the strides being made toward greater equity.

Soon to be featured on Vestlane, Sinefine’s founder will share insights in the second episode of our Private Market Gladiators podcast.

Hearing directly from individuals who have personally experienced workplace imbalances provides incredible insights, allowing us to all learn and grow from their perspectives.

As a closing thought, Selma emphasizes that achieving a more equitable future in private equity requires not only more diverse leadership but also for current leaders to be “committed to creating a more inclusive workspace.”

“On the one hand, there needs to be action in terms of decision makers. And on the other hand, I think you still have to educate and create awareness around this topic.”

When we focus on inclusivity, transparency, and education, we create a private market investment industry that’s stronger and more resilient for everyone.

At Vestlane, we’re proud to stand alongside trailblazers like Selma Peters, as well as forward-thinking companies like Superangels and AENU, to drive meaningful change in private equity management.

Join us in this mission.

Explore our resources, connect with leaders in the field, and become part of the movement to redefine the future of private market investments.