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PitchBook Analyst Note: ESG and the Private Markets

Q2 2021

PitchBook Analyst Note: ESG and the Private Markets

April 28, 2021

PitchBook Analyst Note: ESG and the Private Markets
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How private markets are navigating the application of ESG 

An assessment of risk factors identified as part of the Environmental, Social, and Governance (ESG) framework has become an increasingly important component of any investment process.

PitchBook's latest analyst note explores how LPs are pushing the private markets toward the precipice of widespread ESG adoption. Other key takeaways include:
 
  • LPs and GPs are in search of comparable and reliable data, as measuring and reporting material factors have complicated the widespread integration of ESG into investor and company thinking.
 
  • Several organizations, including the European Commission and the US SEC, require that asset managers accurately and honestly represent their sustainable investment strategies. 
 
  • Even without shareholder pressures found in the public markets, private capital fund managers are feeling pressure from LPs and other stakeholders to think within a sustainable investment framework.