“ESG is really about
risks,” PitchBook analysts write
in PitchBook Analyst Note: ESG and the Private
Markets published in April. More specifically, the
authors explain that ESG factors measure and address risks that
have not historically been captured in financial statements −
risks that could harm a company that fails to take such risks into
consideration. In the private markets, LPs are increasingly
including ESG criteria into their due diligence and investment
processes. The PitchBook article is
available pitchbook-analyst-note-esg-and-the-private-markets">here (subject
to registration).
From our vantage, we see the ESG mark on fund finance expand
almost daily through funds raised with an ESG mandate, facilities
structured to incorporate ESG toggles, new announcements of banks
forming ESG-dedicated groups and an acceleration in ESG-focused
hiring activity. We're not alone in concluding that ESG is
rapidly gaining prominence: FactSet recently
reported that one
