The Principles for Responsible Investment Initiative has published two documents that aim to support the integration of environmental, social and governance issues into private equity i
The Principles for Responsible Investment Initiative has published two documents that aim to support the integration of environmental, social and governance issues into private equity investments.
The work was undertaken at the request of the PRI board, and continues the PRI’s efforts to help investors apply the PRI principles across all asset classes.
The documents were developed by a steering committee, whose members included both PRI signatories and non-signatories from some of the world’s leading institutional investors, funds of funds and private equity firms.
"Responsible Investment in Private Equity: A Guide for Limited Partners" provides detailed suggestions for how limited partner investors can work with their general partners to ensure that ESG issues are considered during fundraising, investment, due diligence and ownership.
"Responsible Investment in Private Equity: Case Studies", includes nine case studies that demonstrate how improved management of ESG issues can help deliver superior bottom-line investment returns. Case studies are provided by Abraaj Capital, Actis, Blue Wolf Capital Management, Doughty Hanson, the New Zealand Superannuation Fund, KKR, Permira and Robeco.
PRI chair Donald MacDonald says: "Through the work of the PRI and others, ESG issues are becoming part of mainstream investments in public equities. But as investors increase their allocations to alternative investments, such as private equity, it becomes more important to integrate ESG issues into these asset classes too. Limited Partners will welcome this Guide, and we hope it will help to increase the number of LPs asking these questions of their GPs. I look forward to hearing the responses from both communities of partners."
PRI was established as a framework to help investors achieve better long-term investment returns and sustainable markets through better analysis of environmental, social and governance issues in investment process and the exercise of responsible ownership practices.
