Driven by the increased momentum in responsible investing, private capital firms are seeing rising investor demand for integrating ESG considerations into the investment process.
However, with a myriad of factors to consider, it is challenging to collect and monitor ESG and impact information across all stages of the private equity life cycle. With these issues in mind, Preqin Solutions has launched an ESG & Impact module.
The ESG & Impact module enables private capital firms to define and automate a structured responsible investment program. With it, general partners (GPs) can clearly outline their goals and choose KPIs by either using industry-leading taxonomies, such as IRIS, or creating their own custom metrics. The module allows GPs to centralise the collection and retention of policy documentation, screen companies on ESG factors during the due-diligence process, automate annual surveys, and monitor progress on 100-day plans or longer-term strategies.
Moreover, when integrated with Preqin Solutions’ existing portfolio monitoring and management systems, the ESG & Impact module provides a holistic view of a fund’s performance, making it easier for users to compare financial and impact KPIs and calculate impact alpha.
Chris Ferguson – Chief Executive, Preqin Solutions, says: “Investors’ demands for better ESG reporting are growing, and the opportunity for fund managers to build value through ESG is increasingly a proven reality. However, many firms lack the tools to implement a program in a structured and effective way. We have been working with pioneers in the ESG and impact investment space, and with leading industry bodies such as PRI and the GIIN, to deliver the first holistic solution to solve these challenges.”
