In brief: ESG shortcomings not a reason for declining re-ups, says Monument LP survey

LPs ranked climate and other impact opportunities behind spin outs and distressed assets as key themes for 2023.

This morning, New Private Markets sat down to breakfast with placement agent Monument Group as part of its media roundtable. Over eggs, avocado and pastries, Monument partners Karl Adam and Janet Brooks, and managing partner Mike Miller, talked private equity, including the results of its recent LP survey. Some morsels from the table:

  • None of the LPs surveyed by Monument cited ESG shortcomings as a primary reason for declining re-ups. Monument suggested this was due to widespread LP satisfaction with managers’ ESG measures, rather than a lack of interest in them.
  • Nineteen percent of LPs cited climate-related opportunities as the most exciting theme of 2023. Twelve percent said non-climate impact. Both areas fell well short of distressed strategies (31 percent) and emerging GPs/spin outs (38 percent).
  • Many US LPs are looking for minority/female-led GPs and are finding there are not enough, Monument said.
  • Most LPs want PE-style returns from impact funds; they are having difficulty finding GPs with sufficiently extensive track records of delivering them.