Prioritizing an ESG Mindset as an Operating Strategy in Private EquityPrioritizing an ESG Mindset as an Operating Strategy in Private Equity

Actively employing operational practices guided by the environmental, social and governance (ESG) framework within a private equity (PE) portfolio gives the fund its best chance of outsized returns.

While at times it seems like ESG priorities can be at odds with financial outcomes, we recognize that implementation of ESG practices is actually a key driver of financial returns in a world with increasing competition among investors. By using an ESG mindset in operating businesses, the PE firm makes its portfolio companies attractive places to work in a world where the labor force is increasingly wary of working for PE. We firmly believe that winning on talent is the best way to win on investments. 

Background

There’s no doubt that ESG is incr...