ESG & IMPACT INVESTING
ESG is increasingly a critical factor for investment managers and advisors, whether due to demand from investors for dedicated ESG funds or the expectation that an ESG assessment is incorporated into the strategies of alternative investment funds. However, the industry has yet to settle on a consistent method of measuring ESG, making deep research into a fund’s strategy a requirement to meet this objective.
Sussex Partners can help an investor both with assessment of ESG in broad portfolios and by constructing dedicated ESG solutions.
Sussex Partners has been involved in ESG investing since 2013, when it advised on the development of a hedge fund portfolio with an ESG filter at the request of a family office investor. Since then, Sussex Partners has engaged with the developing ESG industry as an active participant and a thought leader, having written a series of articles (which can be found below).
Sussex Partners believes there are strong investment opportunities in the ESG/Impact investing space, and seeks out managers capable of delivering on the potential in the space.
Funds Sussex Partners has approved for investment by its clients includes Private Equity Impact funds, as well as liquid UCITs funds. Funds advised on by Sussex Partners which aren’t dedicated impact funds are increasingly factoring in ESG considerations in their investment process as well, as ESG/Impact investing has moved from a niche market to a core part of the investment environment. Sussex Partners includes ESG considerations in both its investment and operational due diligence processes.
Sussex Partners’ investment team has written extensively on ESG in the financial media, and a sample of the articles can be found here:
From Rhetoric to Practice – ESG Investor
Portfolio Strategy - Hedge Funds: Juggling the ESG imperative
– IPE Magazine
ESG and the Liquidity Spectrum – ESG Investor
Patrick Ghali: You are not going to be able to hide from climate change
– Transmission Private
COP26: Investors, managers consider ways to measure ESG’s true impact
– Alternatives Watch
The Problem of Missing Standards – ESG Investor
ESG: Toward a Sustainable Approach to Investing – ESG Investor