News & Analysis

In brief: ESG is a returns enhancer, say 93% of LPs

The firm's investor base also ranked ESG and impact second behind tech and healthcare as the key investment opportunity of 2023.

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Adam Street Partners has released its 2023 Global Investor Survey, which canvasses opinion from the LPs on a range of topics. Some points to note for NPM readers:

  • 33 percent of LPs cited ESG and impact as offering the greatest investment opportunities for private markets investors in 2023. Technology and healthcare was the most popular choice (40 percent).
  • 93 percent of respondents agreed that investment returns are enhanced by incorporating ESG factors into decision-making.
  • Private companies have superior governance compared to public ones, according to 85 percent of respondents.
  • The percentage of LPs that said that ESG considerations were a determining factor in their investment strategy fell by 11 percentage points from 67 percent in 2022 to 56 percent in 2023. Adam Street suggested macroeconomic turbulence, including Russia’s invasion of Ukraine, as a reason.