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Pivotal Expands Investment Strategy Beyond Venture Capital
Today, Pivotal announced an expansion of its investment strategy beyond venture capital to include a broader range of private asset classes. While venture capital remains an important lever to drive innovation and growth, it represents only 20 percent of the global private investment market. By expanding into private equity and other diversifying private asset classes, Pivotal can support overlooked fund managers, including women who are building next-generation firms and have demonstrated their ability to outperform. These managers can deliver strong returns with differentiated investment theses, sourcing, and investing styles based on their unique perspectives and networks.
Private equity is where some of the biggest investments in the economy are made and plays a significant role in how midsize companies across sectors like healthcare and industrial services access the capital they need to scale, hire, and innovate. However, in U.S. private equity, there is a $1.6 trillion disparity in assets managed by women and men, and women hold just 22 percent of investing roles and only 6 percent of senior roles.
A pillar of Pivotal’s investment strategy is the conviction that putting more capital in the hands of managers who are traditionally ignored, such as women, can deliver solutions to social problems and drive strong financial returns. By backing the next generation of private equity firms in these sectors and bringing the sector closer to gender parity, Pivotal is helping ensure that women can shape the industries that affect everyone’s lives.
"Venture capital is powerful, but it's only one part of the private capital engine. To spark the progress society needs, we need to leverage investments across private asset classes—putting capital in the hands of a broad set of game-changing fund managers who we are confident will drive strong returns."
Two New Private Market Investments
As part of the expansion, Pivotal announced investments today in two women-led private equity firms. The first is Awani Capital, a middle-market private equity firm focused on essential business and industrial services companies. Daphne Dufresne, the firm’s founder and managing partner, brings more than 25 years of private equity experience, including eight years as managing partner at a $2.2 billion New York-based middle-market private equity firm.
“Awani Capital is thrilled to partner with Pivotal as we grow our portfolio of essential business service companies across the middle market,” Dufresne said. “This collaboration reflects a shared commitment to supporting exceptional companies and management teams. Drawing on our team’s century-plus of combined experience, we look forward to creating enduring value the way we always have—by employing a servant leadership mindset, forming authentic partnerships, and pursuing disciplined growth.”
The second investment is in Invidia Capital, a private equity firm specializing in healthcare investments. Its founder and managing partner, Jo Natauri, has 27 years of experience investing in health care and was a longtime partner at Goldman Sachs.
“At Invidia, we strive to pursue a creative, forward-thinking approach to healthcare that benefits patients, providers, and payers,” Natauri said. “We believe healthcare is being reshaped by changing patient needs, new models of care and an urgent demand for better outcomes and greater efficiency. We are proud to become a Pivotal partner, as they share our conviction in both the strength of this opportunity and the value of differentiated perspectives in investing. Together, we are committed to improving access, quality, and efficiency across the healthcare system while helping innovative businesses scale their impact and reach more people.”
Doubling Down on Overlooked Fund Managers Leading Next-Generation VC Firms
Even as Pivotal broadens its scope, it remains committed to investing in overlooked fund managers within venture capital. A recent analysis showed that “emerging managers” had already carved out 14 percent of the venture capital market, frequently outperforming larger, more established funds. This analysis includes every Pivotal-backed venture capital fund manager. Pivotal’s new or follow-on investments in venture capital firms in the last year include Basis Set Ventures, ex/ante, Glasswing Ventures, Pebblebed, Premise Ventures, and Vesey Ventures.
About Pivotal
Founded by Melinda French Gates in 2015, Pivotal is a group of organizations working to accelerate the pace of social progress for women and young people in the U.S. and around the world. We use philanthropy, investments, advocacy, and partnerships to drive momentum where we see the biggest opportunities for impact. Pivotal includes Pivotal Philanthropies, Pivotal Initiatives Fund, and Pivotal Ventures.
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