Private equity fund managers are prioritising impact funds and ESG above new deals, directing money to ESG commitments.
That’s according to BDO’s Spring 2022 Private Capital Pulse Survey, which reveal that 50% say they will direct the most capital toward setting up impact funds or investing in targets with ESG-focused themes. This comes out well above the 14% who said they would direct the most capital to applying equity relief to portfolio companies and 12% who said they would direct the most capital to new deals.
ESG has evolved into a core strategy for #PrivateEquity according to a recent survey of fund managers from BDO.
This and other findings of the survey, which polled 200 US private equity fund managers, underscore that the asset class has moved beyond tacking ESG initiatives onto their activities to fusing ESG with core fund strategy. The survey wasn’t designed to focus specifically on ESG, but across the questions BDO asked about deal making, value creation and exit planning, ESG emerged as a solid strategic underpinning that fund managers are pursuing: 99% say they have already identified an ESG strategy, with main objectives ranging from increasing value at exit to attracting and retaining talent.
