Private Markets Climate and Impact Report

Rede Partners is delighted to publish our annual Private Markets Climate & Impact Report analysing institutional investor (or Limited Partner, “LP”) sentiment toward the asset class. Our report is based on quantitative findings from our annual survey of LPs active in the space globally, additional insights from deep dive interviews with a select group of leading investors and the conversations that our dedicated Climate & Impact team conduct on an ongoing basis.

Key findings from the report:

1. Despite market uncertainty, Climate & Impact allocations continue to climb

Allocations continue to increase, driven by firm conviction in the overall opportunity, strong fundamentals, long-term tailwinds and a deepening pool of expertise.

2. Buyout funds gain momentum as LPs channel institutional capital toward proven platforms

Investors prioritise later-stage, cash-generating businesses over early-stage ventures, seeking stability and clearer paths to liquidity.

3. Climate remains core, with ever-broadening sub-themes emerging

As climate themes become a market mainstay, the definition is naturally broadening to include resilience, adaptation, and biodiversity, and investors are seeking scalable solutions beyond decarbonisation.

4. Europe on the rise while US recalibrates

While long-term appetite for North America remains robust, navigating an ever-changing policy tide has led to investors prioritising Europe in the shorter term.

5. Proof of performance - not aspiration - now drives allocation decisions

In a maturing market defined by tightening liquidity and rising scrutiny, a strong concept is no longer enough to garner LP support. Investors are managers who can show demonstrable operational excellence and replicable success.