Environmental, social and governance (ESG) is not just a concept for hippie investors or millennials. It has become a new way of doing business, and if you don’t join the bandwagon now, you will miss the party – or, more specifically, the fundraising party.
It is true that, even until recently, the investment prospects of companies have been largely evaluated only on their financial parameters, such as price-to-earnings ratios or earnings growth. However, ESG has risen firmly to the fore – driven by both investors and regulators, particularly in the wake of Covid-19 – and is now actively being used as a yardstick for judging investment returns while also bringing greater transparency to the alternative investment sphere.
This surge in ESG-focused investing encompasses private debt, which has also been bolstered by the pandemic and is emerging as one of the fastest growing categories of alternative asset. In my latest article published by PaperJam, I discuss the growth of the private debt asset class in line with the rise of ESG investing and examine how the two together can make for a truly powerful combination. Click below to read: