The use of ESG in debt structures has been linked to effective fundraising among private equity firms in Investec’s new GP trends 2022 report.
Findings from a poll of 150 British and mainland European GPs reveal that the monitoring of ESG debt KPIs for ESG-linked debt facilities is more prevalent among those firms that expect to raise a bigger fund next time around, compared with those anticipating “flat future fundraising”.
The data tells a story of ESG moving beyond exercises in compliance “to become predictors of effective fundraising”, the report said.