Survey – Responsible investment in private equity - a key component of operational value creation

Capital Dynamics surveyed 175 general partners (GPs) from private equity funds to gauge how principles of responsible investing and environmental, social and governance (ESG) factors are implemented in the investment process. We experienced a high response rate (109 of the 175 GPs responded) with a vast majority of responses completed by professionals holding senior management positions.

The study results show a strong industry-wide acknowledgement of the value ESG and RI can play in an investment strategy. When applied strategically, rather than as a token marketing gesture, they can produce tangible results that are directly reflected in returns for investors. Many GPs are already experiencing a positive impact on EBITDA as a result of adopting ESG/RI principles and we are not surprised by this result – what was a trend for some is now becoming a priority for many.

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