Don’t greenwash: fund managers must be careful how they talk about ESG

To greenwash, or not to greenwash? That is the question. Green, sustainable, ethical, responsible, environmentally-friendly… these are all words used by managers to describe their funds. As both investors and the wider world become increasingly concerned with sustainability, it is tempting to exaggerate a fund’s ESG credentials to attract more capital. This, however, is a…

ESG regulatory developments: what’s happening and what to do  

While 2022 threatened to become another lost year in the fight against climate change, it has turned out to be the most consequential year so far, in terms of US ESG regulatory developments. Not only has President Biden signed into law the Inflation Reduction Act but, earlier this year, the Securities and Exchange Commission (SEC)…

Diversity and inclusion: from nice to have to mission critical

Diversity and Inclusion (D&I) has risen on the agenda of companies as pressure from various stakeholders to pay closer attention to the topic increases. Investors, employees and consumers are three key stakeholders demanding such a focus. Institutional investors are increasingly incorporating D&I criteria into their manager selection1, pushing GPs to demonstrate how they promote D&I…

EU Taxonomy – Challenges and opportunities for GPs

What is the EU Taxonomy?  The EU taxonomy was created as a classification system for sustainable economic activities. In response to our worsening climate crisis and the lack of initiative from the broader private sector, in 2019 the European Commission launched the Green Deal. The Green Deal set out an ambitious 2030 Climate Target Plan,…

Private markets: sustainability for institutional portfolios

With the global COVID-19 pandemic in its second year now and with the immense uncertainty that institutional investors still face, investment strategy reviews should be high on the agenda (if not already completed!). With the extreme market volatility experienced in the last year and sharpened focus on ESG, investors have been given a wake-up call…

It’s not easy being green: SFDR and communicating your ESG credentials

It’s not easy being green, opines Kermit the Frog as he wanders slowly through a claustrophobic garden of lush leaves and bright flowers – and he doesn’t even have to contend with the new Sustainable Finance Disclosure Regulation (“SFDR”). The bad news for you (at least if you ever plan to raise capital from European…

SFDR – the new ESG regulation in the European Union

Over recent years the EU made a significant political decision to establish a package of Environmental, Social and Governance (“ESG”) initiatives and legislation to move Europe toward several Sustainability goals. Within the package of initiatives is the sustainability related disclosure in the financial services sector Regulation (“SFDR”). This requires financial actors to consider two main…

Unsustainable risks? Regulatory climate change for AIFMD

The Alternative Investment Fund Management Directive (“AIFMD”) was implemented in the EU in 2013, to regulate the alternative investment industry, chiefly as a result of the Global Financial Crisis. Fast forward seven years and this directive is still evolving, but now with a new focus: sustainabilty. On 8th June 2020, the European Commission published a…

ESG factors gaining ground in pension fund investing

If the COVID-19 pandemic has shown us anything, it is the importance of the community in which we live and work. We see this importance upheld through organic ESG improvements. There have been many uplifting stories in social media about acts of goodwill, not just by individuals, but by companies who have responded to the…

Private funds ten-year top ten: biggest changes of the decade

This month, MJ Hudson celebrated its 10th birthday; one full decade. So, for this latest article, we thought we’d enter into the spirit of the occasion by spotlighting the 10 biggest changes we have observed in the private equity funds market, over the last 10 years: 1. The industry got a lot bigger… With interest…

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