Private credit funds – as well as growth equity and venture vehicles – are “lagging behind private equity investors on several major ESG fronts”, according to a report by ESG advisory firm Malk Partners.
Among the key findings:
- While 100 percent of private equity investors incorporate ESG into their investment processes, only 64 percent of credit funds do so.
- A total of 84 percent of private equity funds monitor their portfolio companies on ESG issues – for private credit, the figure is just 11 percent.
- A majority – 70 percent – of private equity firms track gender and 63 percent track race/ethnicity in their portfolios; while only 30 percent of credit investors do so.
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