Private Equity Leaders
The most successful private equity firms are increasingly investing in social impact.
Private Equity Firms are founded by investors who want to directly invest their wealth and knowledge into companies. These could be companies that may have become stagnant and in the need for growth, or organisations that might have experience significant difficulties and they need some support to kick-start the organization back into growth or to change the direction of the business to make it sustainable for the future.
Interestingly, Private Equity leaders in their majority often fall within the Forbes Billionaire list, where their mentality is often within the realms of philanthropy and the impact that they can have on the world at large. This generally means that these Private Equity leaders are using their portfolios to boost this personal agenda. With assets under management by Private Equity now falling within the trillion-mark, the fuel behind these organizations has never been greater.
The Forum for Sustainable and Responsible Investment reported in their 2016 Biennial Report that Sustainable, responsible and impact (SRI) investing assets have expanded to $8.72 trillion in the United States, up 33% from $6.57 trillion in 2014. Their findings also showed that the incorporation of environmental, social or corporate governance within equity portfolios was influenced by: client demand (85%), mission (83%), risk (81%), returns (80%), social benefit (79%) and fiduciary duty (64%).
As the assets managed by private equity continue to grow, the investment toward social impact will continue to increase, with more Billionaire’s being directly involved with this lucrative means of investment for the future.