85 per cent of private capital investors have increased their focus on ESG over the last 12 to 18 months, according to a survey by IQ-EQ, Nomura and Barton Consulting.
In addition, 29 per cent of survey respondents say that ESG principles have a “major role” in their investments.
The report was launched at IQ-EQ’s annual Crossroads conference, with the theme ‘The rise and rise of private capital’. Respondents ranged from financial institutions, family offices and private ultra high net-worth individuals located in North America, Asia Pacific and Europe.
The report investigating the current landscape of the private capital industry found 61 per cent of investors view private equity positively owing to its high return potential and available opportunities, particularly in the real estate, biotechnology and IT sectors.
Regarding the immediate future for the private capital industry, 52 per cent cite they are either ‘very’ or ‘extremely’ confident.
Confidence and anticipation of future opportunities is most felt in Asia, followed by North America and Western Europe, while the US is identified as the favoured jurisdiction (31 per cent) for private investment holding structures.
Commenting on the results, Steve Sokic, group head of private wealth at IQ-EQ, says: “Global investment into private assets is growing exponentially. As a partner to many of the world’s leading investors, IQ-EQ has had a front row seat to the convergence of both private and institutional players into the private capital space, as has Nomura and Barton Consulting.”
Guy Hayward-Cole, managing director, head of advisory, Europe, Middle East and Africa, Nomura, adds: “This report reveals some very exciting trends shaping the future of private capital. There is an increasingly sophisticated ecosystem of wealthy private investors, family offices, major institutions and fund managers driving demand in private capital investments.”
