Private equity asset managers committed to ESG investing now manage over US$3 trillion (almost $4 trillion), or 36 per cent of the value of total global private market assets. This is a result of more and more institutional investors, particularly pension and superannuation funds, focusing their private market allocation on more ESG-oriented investments than they have in the past. There are some large institutional investors who, over the last two years, have shifted their entire private markets investment approach into a sustainable strategy, resulting in a greater need for ESG-focused private markets managers and investment themes.
This typically encompasses investing in private companies along a spectrum from integrating ESG for risk mitigation and performance enhancement through to fully fledged impact investment with specific goals of having a measurable environmental or social impact.
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