In brief: Private debt lags behind private equity on ESG, Malk finds

ESG adviser Malk Partners finds only 64% of credit funds incorporate ESG into their investment processes.

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.

Click here for the full report, registration required.