Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
A defining characteristic of the private equity and venture capital (PE and VC) investment style is the injection of expertise (including technical knowledge, industry relationships, management skills, and so on) in conjunction with risk capital in...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/548171545210571956/Private-Equity-and-Venture-Capital-s-Role-in-Catalyzing-Sustainable-Investment-Input-Paper-for-the-G-20-Sustainable-Finance-Study-Group http://hdl.handle.net/10986/31056 |
| Summary: | A defining characteristic of the private
equity and venture capital (PE and VC) investment style is
the injection of expertise (including technical knowledge,
industry relationships, management skills, and so on) in
conjunction with risk capital into enterprises to help them
grow, improve their performance, and achieve strong
financial returns. Harnessing this investment style in the
pursuit of sustainable growth and investment is central to
achieving the innovation needed for sustainable development.
PE funds increasingly align with value creation linked to
social and environmental considerations. PE firms are
recognizing the material value brought by sustainable
businesses and social enterprises, which has resulted in a
greater availability of sustainable PE capital that follows,
to varying degrees, one or more of the disparate standards
being developed or already in the market. This paper focuses
on key aspects of sustainable PE and VC market development
and deployment. It discusses: (1) why sustainable PE and VC
is a useful tool to catalyze other types of capital to
achieve sustainability objectives, (2) best practices and
lessons learned from the experiences of knowledge partners,
(3) the main barriers to further developing the sustainable
PE and VC market, and (4) options for countries to
voluntarily consider or adopt to overcome these barriers. |
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