Sallie Krawcheck steps down as CEO of Ellevest, passing the torch to new female leadership
Welcome to #266 weekly newsletter from The Purse.
Quick take..
Sallie Krawcheck, the co-founder and CEO of Ellevest, a female-focused investment platform, is stepping down from her role due to health reasons. The platform, which manages $2.4bn in assets, will now be led by Chief Investment Officer Sylvia Kwan and COO/CFO Connie Hsiung as co-CEOs, ensuring continuity in its mission to empower women financially.
What you need to know..
Leadership change: Krawcheck transitions to a board role, leaving day-to-day operations to co-CEOs Kwan and Hsiung.
Ellevest's impact: The platform is one of the top ten fastest-growing Registered Investment Advisors, addressing the gender investment gap.
Mission-driven: Ellevest continues to prioritise getting more money into the hands of women through tailored financial products.
A closer look..
Ellevest, led by Krawcheck, has changed the game for women in finance. It offers smart tools to help women invest and learn about money. Since starting, Ellevest has raised $155m from 49 investors over seven funding rounds.
What’s amazing is that 90% of its Series B investors were women and other underrepresented groups, contributing 68% of the funds. Big names like Melinda French Gates, Sarah Kunst, Caroline Lewis, and Jenny Abramson have backed the platform. This support shows how women are stepping up to shape the future of finance and help others take charge of their money.
Quote..
"I love our mission to get more money in the hands of women, and I love that we have had a positive impact on so many of you — and your sisters, your friends, your moms, your wives, and your daughters." – Sallie Krawcheck
The economic context…
Financial empowerment: a McKinsey & Company study found that women in the U.S. are set to control an unprecedented $30tn in assets by the end of the decade, highlighting a significant shift in wealth ownership.
Economic participation: Studies show that empowering women financially boosts GDP and economic stability.
Leadership representation: Krawcheck’s departure raises the bar for leadership transitions in companies prioritising gender diversity.
The flip side..
Leadership model challenges: The co-CEO structure is uncommon and may present challenges in decision-making and strategic alignment.
Market Confidence: Stakeholders might be concerned about Ellevest's ability to maintain its growth trajectory during this leadership transition.
In summary…
Sallie Krawcheck’s transition from CEO to board member ensures Ellevest’s mission remains in capable hands. Her leadership legacy underscores the importance of resilience, health, and empowering women to achieve financial independence. The transition also highlights the challenges of maintaining momentum and market confidence during leadership changes, offering a case study in balancing mission-driven growth with operational scalability.
We’d love to hear from you. Get in touch with Jana via the The Purse website or tweet @jointhepurse and janicka. We do no provide investment advice. Please do your own research or speak to a financial adviser.
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