We are delighted to publish the Rede Partners Private Markets Sustainability and Impact Report, looking at institutional investor sentiment towards Sustainability and Impact Investment in private equity. Despite a tightening in the general fundraising environment, our research highlights real momentum within Impact, with an increasing recognition of its potential to deliver significant financial returns alongside non-financial benefits.
PUBLICATION: Rede Partners Private Markets Sustainability and Impact Report
28 Mar 2023
Key findings:
KEY FINDINGS:
- IMPACT HAS COME OF AGE
A major change in LP attitudes to Impact investment – driven by an increasing belief that the Sustainability megatrend has the potential to drive strong returns - has significantly expanded the size and maturity of the Impact market
- LPS' (SECOND) MOST WANTED
Sustainability and Impact is now the second most frequently cited sector for LPs seeking to expand allocations
- CLIMATE LEADS THE WAY
Increasing awareness of the decarbonisation market opportunity and
momentum is generating a strong gravitational pull towards climate-related themes across asset classes
- ACTIVE STRATEGIES IN DEVELOPED MARKETS
LPs currently favour Buyouts and Growth Equity strategies in North America and Europe
- CYNICISM REMAINS THE GREATEST THREAT
Greenwashing, de-prioritisation in the light of macro-economic turbulence and the ‘anti-ESG’ movement threaten the continued success of Impact
- FUTURE ROADMAP
Improvements in methodological rigor, standardised reporting, transparency and alignment will be key to securing the long-term future of Impact
