Laxman Pai, Opalesque Asia: Half of the private equity (PE) fund managers said they will dedicate the greatest share of their capital over the next six months toward setting up impact funds or investing in targets with environmental, social, and governance themes said a survey.
According to BDO's Spring 2022 Private Capital Pulse Survey, ESG emerged as a solid strategic underpinning that fund managers are pursuing: 99% say they have already identified an ESG strategy, with main objectives ranging from the increasing value at the exit to attracting and retaining talent.
The survey, which polled 200 U.S. private equity fund managers, underscores that the asset class has moved beyond tacking ESG initiatives onto their activities to fusing ESG with core fund strategy.
Higher asset prices, inflation, and interest rate increases are some of the headwinds making value creation more challenging, it said. Nearly half (47%) of fund managers identified performance improvement, reducing costs, and enhancing revenue as their top post-M&A challenges, followed by operational improvements and realizing deal synergies, which tied for second place.
With the rise of stakeholder capitalism in recent years, the idea that businesses have a responsibility -not just to their shareholders, but also to their employees, customers, suppliers, societies, and the planet - is becoming a greater part of private equity leaders' mindset. More than one-third (38%) of fund managers say they a...................... To view our full article Click here
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