New Series to Highlight Industry Leaders on Private Equity Trends
WASHINGTON – The American Investment Council launched “AIC Insights” today, a new series of succinct presentations that will explore trends and issues impacting private equity. The initial five “insights” will review ESG, private investment in infrastructure, regulatory matters, GP/LP relations, and developments in Washington.
The inaugural presentation, “ESG & Private Equity: A Work in Progress,” is narrated by the AIC’s Vice President of Research and Investor Relations Bronwyn Bailey and reviews the development and integration of ESG standards while offering resources for best practices.
“ESG is fairly new to many private equity firms,” said Bailey. “On the one hand, some of the larger private equity firms have whole teams dedicated to the integration of ESG factors in their portfolios. On the other hand, the majority of private equity firms may have an ESG policy but it is likely not yet fully integrated into the investment process.”
Key takeaways from “ESG & Private Equity: A Work in Progress”:
- ESG is poised for growth in private equity. Although ESG and monitoring ESG is much more advanced in public companies, the business model of private equity actually gives it more opportunity to influence ESG factors in its portfolio companies.
- GPs say investor demand is the main motivator for ESG. According to one survey, 97 percent of investors believe responsible investment will increase in importance over the next two years. 71 percent of investors would decline to participate in a fund on ESG grounds.
- There are many resources to help PE firms integrate ESG. The AIC Guidelines for Responsible Investment, UN PRI Guidance, SASB, GRI, CDC Toolkit, and EDF are among the leading guidelines.
The next AIC Insights will focus on private investment in infrastructure, which the AIC recently examined in its report Private Capital and Public Good.
View AIC Insights here.
About the American Investment Council
The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.