With more than $3 trillion in assets under management—nearly $800 billion of which is allocated to emerging markets—private equity can be a powerful source of financing, especially for innovative businesses that cannot access bank loans or capital markets. Investors and funds with stakes in these privately owned companies not only help them expand, they also contribute to generating jobs, tax revenues, and better services.

A new IFC report makes a compelling business case for gender diversity at private equity firms in emerging markets. In collaboration with investment firm RockCreek and consulting firm Oliver Wyman, IFC analyzed more than 8,000 firms and found that gender balance has a significant impact on financial performance.