ABSTRACT
The climate of social, environmental, and governance (ESG) investing continues to evolve across all asset classes. Specifically, in private equity and venture capital, there are both more and different dollars being invested in ESG-aligned projects and businesses. While the private ESG playing field is wide and fractured, players can perhaps be segmented into the following four categories: private equity firms investing exclusively in ESG, venture capital firms investing exclusively in ESG, private equity firms investing in and outside ESG, and venture capital firms investing in and outside ESG. In the world of ESG-exclusive private equity investing, lines arguably blur between classic private equity models and growth private equity strategies. Venture capital firms investing exclusively in ESG often focus on higher-growth markets, differentiated companies with a fundamental ESG mission, significant minority investment stakes and partnership roles with portfolio companies.
