Value Of ESG Not To Be Underestimated In Fund Selection Process

Having a clearly defined environment, social and governance (ESG) policy is now a key factor in attracting investors to a fund, a London funds audience has heard.

Nearly 500 delegates attended the Guernsey Funds Forum in London last week [12 May] to hear a panel of leading funds experts debate investor perspectives, including a focus on ESG investment.

Tim Hughes, who leads PwC's European team advising on management incentives in private equity, told the audience that ESG had become increasingly important in investor relations.

"You won't raise some of the large funds these days without dealing with ESG within the PPM [Private Placement Memorandum]. Many investors would actually withdraw from funds if they're not dealing with ESG properly and I think it's equally important to the funds themselves - it's not just the portfolio companies," said Mr Hughes.