Finance is ‘pale, male and stale’, says UK’s first transgender investment chief

The founder of Britain’s first transgender-led investment firm has said the finance industry remains dominated by “old white men” and is an intimidating environment for trans women.

Reece Tomlinson, founder and chief executive of Saône Capital, said the sector has historically not been regarded as a safe place for trans people.

She said: “Trans people continue to face barriers. If you look at the financial world, it is still predominantly white male, and full of older white males.”

Ms Tomlinson, who is trans, said she has personally experienced transphobia in the financial industry.

“For trans women coming up, it’s scary and a lot of people think it is out of reach… I think minorities, women and trans people certainly have challenges within the finance world because they are generally not well represented at the top.

“We don’t see a lot of trans women in business yet because for younger people growing up who are trans, it wasn’t seen as a safe place to go into.”

The comments come as Ms Tomlinson plans to launch Saône in the UK, marking what is believed to be Britain’s first trans-led investment company.

Ms Tomlinson’s suggestions that the industry is dominated by “old white men” plays on the popular perception that the industry is “pale, male and stale”.

The financial industry has long been dominated by men in senior positions, though this has shifted in recent years.

Companies have been coming under increasing regulatory pressure to do more to encourage gender diversity and several leading banks are now led by women, including NatWest.

However, large financial institutions have employed few trans people in senior roles. Pips Bunce, an executive at Credit Suisse who identifies as gender fluid and has been named as an inspirational leader in the British LGBT Awards, is one of the few non-binary people to hold a senior position in the City of London.

Other financial companies have brought in policies in a bid to appear more inclusive.

Several high street banks, including NatWest, have trialled uniforms that include optional pronouns printed on badges.

The policies have provoked a backlash in some quarters. Halifax told customers last year “if you disagree with our values, you’re welcome to close your account” after some people took offence to the listing of favoured pronouns on staff badges.

In another instance of support for the trans community, PayPal froze the account of the Free Speech Union, an organisation that defends gender-critical academics and people who have lost work for expressing opinions.

However, the payments company later reversed the decision after being accused of a “orchestrated, politically motivated” ban.

Ms Tomlinson said that before she transitioned, she thought coming out as trans would end her career.

She said: “The idea of coming out of trans was terrifying, I thought it would be career suicide. I assumed it would blow up my career.

“But once I started leaning into my truth, I realised I had no other option. It was terrifying to do it first but it was also terrifying in many small ways, like going to my first big meeting or walking into a room for the first time and going through a client’s office. It was all just new and scary.”

Before setting up Saône, Ms Tomlinson, 37, founded several businesses including boutique advisory firm RWT Growth.

While she does not consider herself an “advocate” for trans people, she said she hopes her profile will encourage more trans people into the finance industry.

Ms Tomlinson said: “One of the things I really started to do was to embrace giving people the realisation that they can achieve it too, whether that’s being trans or whatever they have going on, they can be truthful to who they are.

“For me, there weren’t very many people that I saw in the community that I could look up to as role models. I want to provide some level of motivation and inspiration to people.”

Ms Tomlinson said Saône will not be marketed as a trans-led fund, adding: “I don’t like when you hear people talking about female founded funds or in my situation a trans female fund.

“I’m not interested in that because our performance should be our number one priority. It shouldn’t be about who I am.

“If we can use it to our benefit then it will maybe help normalise being trans in finance. But our number one goal is about making an impact and it’s not about me being a trans female founder.”

However, she argued that her being trans could still be a competitive advantage.

“Some founders are coming to us and saying ‘you get what we need, we can talk to you’. They understand that we realise what they’re going through, versus older white male-led businesses that can’t necessarily relate. It’s given us a competitive advantage in some ways.”

Saône invests in companies and provides advice. It specialises in funding and advising “ethical” companies and those with founders from minority backgrounds.

Ms Tomlinson currently splits her time between London and Canada, where she grew up and Saône has its main base.

The company, founded in 2022, already operates in the US and Canada. Its new London office will be used as its base to expand into Europe.

The fund manages $13m (£10.5m) at present, but is aiming to have $1bn under management by 2027.

Ms Tomlinson said: “Our goal is to help companies that are positively impacting the planet and those that are coming from underrepresented founders.”

Saône provides money to companies in several different industries, including renewable energy, battery storage, and clean water. Current investments include an e-scooter charging company and a marketplace for second hand clothing.

Ms Tomlinson said: “During my career, I had my own things to deal with obviously being trans. And as I stepped into my truth it dawned on me that I wanted to do something that was positive, rather than just making founder and leadership teams more money.

“We’re looking to back businesses that can make an impact while also making a lot of money and I don’t think the two are mutually exclusive.”

The company’s investments so far have ranged between $250,000 and $5m.