How to invest smart money sustainably

Investment opportunities across regions and sectors are changing. Institutional investors are moving away from macroeconomics-based investment strategies, which, in turn, is impacting thematic investing. 

While sustainable and impact investing has seen rapidly increasing popularity over the last couple of years, there is an urgency to this shift. 

Net-zero commitments may no longer be enough, professional investors are facing calls for a more stringent approach to increase impact, and asset managers must counteract accusations of greenwashing. 

Sustainable investing requires the right service providers

Private capital investors are in a unique position to impact financial and social value creation. Each functional component—legal, fund services, banking, insurance, consulting, sales & marketing, ICT, HR, research—offers opportunities to positively impact and deliver outstanding value to stakeholders often also with FinTech solutions like e.g. protect. Applying an ESG lens when sourcing investments and throughout due diligence can expose ESG-related risks and opportunities. Developing, implementing, and monitoring ESG strategy throughout the portfolio is key to sustainable value creation.

Thematic Investing – Taking Investments from Institutional Investors to Private Investors

In exits, sky-high multiples in some sectors—especially technology—are enabling GPs to realize investments sooner than anticipated.

 Firms are increasingly putting their best assets into continuation funds.

 A wave of PE firm M&A has so far concentrated on secondary managers.

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