Long-term commitment to sustainability
The lack of high-quality data has been a major obstacle for investors in their sustainable investment strategies, and this is even more pronounced for private capital managers due the lack of public information when investing into non-listed assets. Despite these hurdles, they are pushing forward, leveraging their unique position as direct stakeholders in the companies they invest in, to pave the way for a more sustainable future.
Our last ESG Survey 2025 shows that private capital managers are becoming powerful drivers of sustainability
outlines Guillaume Doinet, Head of Growth Strategy for Private Capital at BNP Paribas’ Securities Services business.
Beyond compliance, they increasingly see ESG as a source of value creation: enhancing alignment with asset owners to support the transition to a low-carbon economy while maximising financial performance, since private equity funds with higher ESG ratings tend to generate higher net internal rate of return (IRR). Investor demand is a key catalyst. Clients now expect to see a clear sustainability lense applied across most private asset classes.
One key factor is the long-term perspective on their investments, enabling private capital managers to respond with more proactive and integrated approaches
he adds.
They are closely engaging with portfolio companies to influence their sustainable investing practices, identify opportunities for growth and value-creation. Through direct engagement and active ownership, they can identify opportunities for growth, drive operational changes, and encourage them to adopt more sustainable practices.
The importance of social dimension
While environmental concerns remain central, the survey shows that private capital managers increasingly recognise that social dimension of ESG. By combining environmental and social considerations, they are pursuing a holistic investment strategy that benefits both people and the planet.
Focus on decarbonisation
Decarbonisation is a priority. Private capital managers are actively emphasising investment themes such as renewable energy, energy efficiency and the broader transition to a low-carbon economy. Their role is critical in financing projects that address these issues while generating returns.
How we can help
We provide fully integrated end-to-end asset servicing solution for both investment managers and asset owners investing into non listed assets. This comprehensive solution encompasses depositary services, cash management, financing, fund administration, investor services, portfolio monitoring, performance forecasting, benchmarking analysis, and ESG insights; everything being accessible through our CapLink Private portal.
As an example, we recently supported a major lender to set-up and launch their first dedicated impact fund which addressed environmental and social challenges across four core themes under the UN SDGs. We accompanied the client not only in setting up and administering the fund structure but in supporting the operational set-up.
Conclusion
Private capital managers have emerged as strong agents of change in the sustainability journey.
With the long-term commitment to ESG investing, emphasis on social dimension and strategic focus on decarbonisation, they are uniquely placed to shape the ESG conversation
he concludes.