Sustainability matters for private markets

Walk The Talk has reviewed the platforms used by private investors to report and manage data.

Private assets under management (AUM) are expected to soar past $60-65 trillion by 2032, outpacing public assets by more than double, as per Bain & Company. This surge aligns with a growing demand among Limited Partners (LPs) for investments that comply with Environmental, Social, and Governance (ESG) standards, as adherence to ESG frameworks becomes increasingly vital for boosting transparency and attracting investors.

The proportion of private equity managers with strong ESG processes has surged from 27% to 73% over the past decade. Moreover, a KPMG survey of 200 U.S. ESG practitioners revealed that 53% reported deal cancellations due to significant ESG due diligence findings, while 42% noted that ESG concerns led to reductions in purchase prices.

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