Ardian, one of Europe’s biggest investment houses, sees the gap between impact investments and performing investments converging in the long term.
“As a private investment house, we are convinced that the most sustainable companies will have the greatest long-term value to all stakeholders. It is essential,” said Dominique Senequier, Ardian’s founder and president, on 29 June during the firm’s virtual summit on climate action. There will be a first-mover advantage for strategic investors, she added.
Senequier said the Paris-headquartered firm takes sustainability into account as it pertains to all its processes and that it has initiatives for managers in its portfolio companies based on ESG criteria.
The firm is not alone, as several private equity thought leaders have given serious attention to ESG investing. Goldman Sachs‘ Sustainable Investment Group raised $800 million in a first close on its debut Horizon Environment and Climate Solutions Fund, affiliate title New Public Markets reported this week. It expects to surpass its initial $1 billion target this year. KKR has returned to the market with its sophomore impact programme, Global Impact II, as Private Equity International reported.
BlackRock also launched its debut private equity impact vehicle last month, as NPM reported. TPG is seeking $5 billion to invest across a range of strategies to approach the climate crisis, and Apollo Global Management has reportedly set a $1 billion target for its debut social impact fund.
For its part, Ardian’s sustainability programme has four main priorities: climate change; diversity and equal opportunities; profit sharing; and governance and ethics.
“As the president of Ardian, my philosophy has always been investing must be a force for good,” Senequier added.