Responsible investment in private equity - a key component of operational value creation - Capital Dynamics

​Capital Dynamics surveyed 175 general partners (GPs) from private equity funds to gauge how principles of responsible investing and environmental, social and governance (ESG) factors are implemented in the investment process.

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... Capital Dynamics believes that adopting RI principles leads to enhanced long-term financial returns and a closer alignment of objectives between institutional investors, other stakeholders and society at large. The study results show a strong industry-wide acknowledgement of the value ESG and RI can play in an investment strategy. When applied strategically, rather than as a token marketing gesture, they can produce tangible results that are directly reflected in returns for investors. Many GPs are already experiencing a positive impact on EBITDA as a result of adopting ESG/RI principles and we are not surprised by this result – what was a trend for some is now becoming a priority for many.

Date of publication: April 2017


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