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Bailey McCann, Opalesque New York:

Despite the rhetoric surrounding ESG, both private equity investors and money managers seem to be all in - according to new data from PwC Luxembourg.

The findings are based on a wide range of primary data gathered through a survey of 300 GPs and 300 LPs across all four jurisdictions.

According to the report, 87.5% of LPs surveyed are planning on increasing their private market ESG investments over the coming two years - with over a third targeting increases of more than 20%. The increase has been especially significant in the US. 97.0% and 94.0% of US LPs and GPs are planning to increase their investment in private markets ESG products over the coming 24 months - the largest degree of willingness recorded across all regions.

Asset Managers are responding, with 86.5% of those surveyed planning to expand their ESG PM offering over the coming 24 months to capture this demand - of which almost half are planning to expand their ESG product shelves by over 20%.

A solid portion of the growth could come from private equity. Private Equity LPs and GPs currently have the lowest average asset allocation toward ESG products. Only 57.4% of private equity investors allocate over 30% of their portfolios to article 8 funds, falling behind the average 63.7% and 62.1% figures recorded among their real estate, infrastructure and private debt counterparts.

Investors may also be willing to accept higher fees to make ESG investments. 66.6%......................

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