This chapter examines sustainable private equity (PE) and venture capital (VC) in developing economies. PE and VC funds have taken a keen interest in ‘sustainable investing’ and are seen as key enablers in achieving the global Sustainable Development Goals (SDGs). Several factors have influenced the growth of sustainable PE and VC. These include willingness of top management of sustainable businesses these funds; increasing awareness of PE investors of sustainability issues; networking and partnerships between sustainable businesses and PE investors; sustainable investments reduce the long-run risk of a firm, improve its brand image and reduces contracting costs with various stakeholders. In pursuing sustainable investments, PE and VC firms encounter a number of challenges. These challenges include measuring and comparing the impact of PE/VC investments; difficulty in mapping SDGs to investments in certain sectors; lower return of sustainable investments compared to traditional investments; potential longer maturities of sustainable PE/VC investments; verifiability of reported sustainability measures and impact.
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Front Matter
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Part I: OVERVIEW OF SUSTAINABLE AND RESPONSIBLE INVESTMENT
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Part II: SUSTAINABLE AND RESPONSIBLE INVESTMENT: EVOLUTION, PRINCIPLES AND IMPACT
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Part III: LONG-TERM RESPONSIBLE INVESTMENT, GOVERNANCE, FIDUCIARY CAPITALISM AND SUSTAINABLE DEVELOPMENT
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Part IV: FINANCE AND SUSTAINABILITY
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Part V: SECTOR-SPECIFIC SUSTAINABLE AND RESPONSIBLE INVESTMENT
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Part VI: SUSTAINABLE AND RESPONSIBLE INVESTMENT PORTFOLIO CONSTRUCTION AND SUSTAINABLE VALUATION
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Part VII: EMERGING TRENDS AND REGULATION OF SUSTAINABLE AND RESPONSIBLE INVESTMENT
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Back Matter
