ESG Considerations in Private Funds

Summary

This practice note provides an overview of certain Environmental, Social & Governance (ESG) issues that private fund sponsors should expect to encounter while marketing their funds. The goal of this note is to help sponsors identify the key areas of concern for regulators and investors on both sides of the ESG divide. Understanding these concerns should help sponsors attract capital from both pro-ESG and ESG-skeptical investors while still complying with their regulatory obligations. This practice note was prepared specifically for private fund sponsors, and the viewpoints expressed here are from the sponsor perspective.