Key terms and methodology

Product Summary

The New Private Markets’ database holds information on how the world’s private market investors and managers approach sustainability and impact investing.

The database lists private equity, private debt, infrastructure, agriculture, and private real estate funds that pursue an impact investing strategy as well as funds that classify themselves as either Article 8 or Article 9 under the European Union’s Sustainable Financial Disclosure Regulations.

The database also profiles the general partners (GPs) that manage and limited partners (LPs) that commit capital to sustainable funds.

Definitions

Funds

• Article 8 is a product disclosure from the European Union Sustainable Financial Disclosure Regulations (EU SFDR). An Article 8 fund is, by the EU SFDR definition, “a Fund which promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.”

• Article 9 is a product disclosure from the European Union Sustainable Financial Disclosure Regulations (EU SFDR). An Article 9 fund is, by the EU SFDR definition, “a fund that has sustainable investments as its objective or a reduction in carbon emissions as its objective.”

• Impact: a fund will be considered an impact fund if marketed by the fund manager as such. Specifically, an impact fund aims to generate positive, measurable social and environmental impact alongside a financial return in private markets. Impact investments can be made in both emerging and developed markets and target a range of returns from below market to market rate.

• Sustainability Themes are applied by New Private Markets to funds that are defined as having an impact strategy. The themes are based on the United Nationals Sustainable Development Goals. They are:

• • No poverty – end poverty in all its forms everywhere.
  • Zero hunger – end hunger, achieve food security and improved nutrition and promote sustainable agriculture.
  • Good health and well-being – ensure healthy lives and promote well-being for all at all ages.
  • Quality education – ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
  • Gender equality – achieve gender equality and empower all women and girls.
  • Clean Water and Sanitation – ensure availability and sustainable management of water and sanitation for all.
  • Affordable and Clean Energy – ensure access to affordable, reliable, sustainable, and modern energy for all.
  • Decent Work and Economic Growth – promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
  • Industry, Innovation, and Infrastructure – build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.
  • Reduced Inequalities – reduce inequality within and among countries.
  • Sustainable Cities and Communities – make cities and human settlements inclusive, safe, resilient, and sustainable.
  • Responsible Consumption and Production – ensure sustainable consumption and production patterns.
  • Climate Action – take urgent action to combat climate change and its impact.
  • Life Below Water – conserve and sustainable use the oceans, seas, and marine resources for sustainable development.
  • Life on Land – protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
  • Peace and Justice Strong Institutions – promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable, and inclusive institutions at all levels.
  • Partnerships to achieve the Goal – strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development.

Inclusion criteria

General Partners

A GP will be included in the database if it:

• manages at least one fund that is classified as Article 8, Article 9 or has an impact strategy
• employs individuals with specific and defined ESG responsibilities.
• has a publicly available ESG policy.
• is a member of signatory of:
  • United Nations Principles for Responsible Investment (UNPRI)
  • Global Impact Investing Network (GIIN)
  • UN-convened Net-Zero Asset Owner Alliance
  • The Net Zero Asset Managers initiative (NZAM)

Limited Partners

An LP will be included in the database if it:

• has committed to at least one fund that falls under the three fund type categories
• It has a defined investment appetite for impact investing.
• employs individuals with specific and defined ESG responsibilities.
• has a publicly available ESG policy.
• is a member or signatory of:
  • United Nations Principles for Responsible Investment (UNPRI)
  • Global Impact Investing Network (GIIN)
  • UN-convened Net-Zero Asset Owner Alliance
  • The Net Zero Asset Managers initiative (NZAM)

Funds

A fund will be included in the “sustainable funds” section of the Funds Managed tab of a GP profile if it:

• Classifies as Article 8 under the European Union’s Sustainable Financial Disclosure Regulations.
• Classifies as Article 9 under the European Union’s Sustainable Financial Disclosure Regulations.
• Is defined as pursuing an impact strategy

All other funds currently being raised or that have closed in the last 12 months will appear on the “All other funds” tab of a GP page.

Similarly, an LP’s commitment to a fund will appear on the “sustainable funds” section of the Fund Commitments section of an LP profile if the fund:

• Classifies as Article 8 under the European Union’s Sustainable Financial Disclosure Regulations.
• Classifies as Article 9 under the European Union’s Sustainable Financial Disclosure Regulations.
• Is defined as pursuing an impact strategy

All commitments made in the last 12 months will appear on the “all other funds” section of the LP Commitments tab of an LP profile.