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The PE industry remains upbeat as it addresses slow fundraising, artificial intelligence and ESG issues, among others, according to panellists at PEI's NEXUS 2024 summit this week.
Impact investor Summa Equity closed Summa Circular, believed to be the first Article 9 continuation fund, in December, breaking new ground for the secondaries market.
Adviser estimates put secondaries transaction volume at around $110bn, with GP-led processes accounting for roughly 45% of those transactions.
Partnering with GPs on environmental deals provides the perfect opportunity to generate positive contributions and outsized returns, says Nicolas Thomas, private equity investment manager at Pictet.
The firm's latest and largest fund will have diversity targets for portfolio company leadership teams, according to partner Nnennia Ejebe.
A collaborative approach to setting and driving forward ESG priorities can build long-term value for a business and its stakeholders, say Adinah Shackleton at Permira and Federica Ruzzi at portfolio company Golden Goose.
While data collection and reporting are now a matter of regulatory compliance, GPs need to engage with portfolio companies through a business strategy lens, say Cority’s Anne Matusewicz and David Wynn.
Artificial intelligence could help turbo charge sustainability efforts in private markets by freeing up stretched ESG professionals to focus on strategic work.
Whether they have access to in-house ESG resources or external experts, effective data management remains a priority for chief financial officers.
Japanese LPs increasingly view strong ESG credentials as a must-have, say NSSK’s Jun Tsusaka, Yuzuru Ichinohe and Kiyomi Matsuda.