ESG

Direct lenders may not have the same level of strategic control of companies as private equity firms, but expectations around ESG are no different, say Permira Credit CEO James Greenwood and Permira’s head of ESG Adinah Shackleton.

Credit investors can no longer afford not to have environmental, social and governance issues front of mind, say Ares Management’s Blair Jacobson, Carl Helander and Adam Heltzer.

As the talk around climate change grows, investors are increasingly looking to invest in sustainable funds.

Firms are recruiting for responsible investment roles and looking for individuals with skill sets ranging from investor relations to ESG integration.

There’s no doubt that ESG is a major talking point within private debt, but there’s considerable divergence among fund managers on the best way forward.

Close partnerships with management teams are key to building more sustainable business practices, says Katharine Preston, vice-president, sustainable investing at OMERS.

Permanent funds, infrastructure debt, insurance tie-ups, private credit marketplaces and sustainability-linked loans.