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42% of AUM across private capital is managed by funds that have an active ESG policy

June 23, 2022 - 18:30 By

Demand For ESG Investment is Rising - Preqin ESG Report 2022

SINGAPORE, June 23, 2022 /PRNewswire/ -- Today Preqin, the global leader in alternative assets data, tools, and insights, has published its annual Environmental, Social, and Governance (ESG) report: ESG in Alternatives 2022: The Transparency Tipping Point. The report provides the latest insights on developments in the private markets ESG landscape.

As of October 2021, Preqin has tracked $4.37tn of private capital assets under management (AUM) managed by firms that report being committed to ESG investing.* This represents 42% of total private capital AUM ($10.3tn). 

  • Private Equity and Venture Capital: AUM of funds reporting as ESG committed is at $2.26n, and the percentage of AUM under ESG commitments is 34% 
  • Private Debt: AUM of funds reporting as ESG committed is at $0.73tn, and the percentage of AUM under ESG commitments is 59% 
  • Real Estate: AUM of funds reporting as ESG committed is at $0.66tn, and the percentage of AUM under ESG commitments is 51% 
  • Infrastructure: AUM of funds reporting as ESG committed is at $0.61tn, and the percentage of AUM under ESG commitments is 64% 
  • Natural Resources: AUM of funds reporting as ESG committed is at $0.11tn, and the percentage of AUM under ESG commitments is 50% 

Jaclyn Bouchard, EVP, Head of ESG Solutions, at Preqin, says: "As ESG continues to embed into private capital markets, tracking managers' commitments is essential to inform investors who to select to achieve more sustainable portfolios. Private markets are at a transparency tipping point. High-quality and reliable ESG data is essential to move from vision to reality. The more transparent the industry is on ESG reporting, the better our data and analysis can be for the whole private markets lifecycle – it is a symbiotic relationship."  

#ENDS#

Note to editors  

*Firms that Preqin mark as committed to ESG are filtered based on whether they have an ESG investment policy in place. Preqin does not currently track ESG-specific funds.

About Preqin 

Preqin is the Home of AlternativesTM, the foremost provider of data, analysis, and insights to the alternatives industry. The company has pioneered rigorous methods of collecting private data for almost 20 years, enabling more than 170,000+ global professionals to streamline how they raise capital, source deals and investments, understand performance, and stay informed. For more information visit www.preqin.com. Or contact carmen.wong@preqin.com for press enquiries.