ESG

The US may look to travel in one direction as Europe heads in the other. But there may be less to this divergence than meets the eye

A growing number of mainstream players are committing to impact strategies.

Engagement over ESG takes priority as fund managers try to balance the US and Europe divide.

Transition finance is complementary to impact investing, say Tikehau Capital’s Vincent Lemaitre, head of ESG for private debt and tactical strategies, and Lindee Wong, director of climate and biodiversity.

Depending on which allocator you speak to, private credit presents either a promising way to invest with impact, or sustainability’s ‘humungous gap’.

Fundraising by private debt firms for impact strategies appears to be picking up, even as ESG integration into mainstream strategies may be declining.

Talent management, bank funding and the rise of artificial intelligence are just some of the issues that private debt players need to contemplate.

The rhetoric surrounding ESG may be well established in the private debt industry, but some firms’ attention to social and sustainability concerns is starting to wane.

Australia’s private credit market is maturing, but a better understanding of the region’s nuances would serve investors well, says FC Capital’s CEO Christan Brehm.