Impact

After three years spent grappling with the EU sustainability rules, some managers have found an approach that works for them; but most still are hoping for reform.

Impact reports support asset owners and allocators to 'make investment and engagement decisions,' the guide states.

Linking a portion of carried interest to impact performance is becoming more common, with private equity firms like Apollo, Apax and EQT implementing such a mechanism. LPs are split on the idea.

Linking impact or ESG to financial incentives was a big topic at the Impact Investor Global Summit; it is an 'imperative for the industry' that requires investors and managers to adopt an experimental mindset.

The amount of dry powder dedicated to impact secondaries increased markedly in 2022 – if from a very low base.