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...

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Main Authors: Ahmad, Reyaz A., Reed, Laird, Zhang, Rong
Format: Working Paper
Language:English
Published: International Finance Corporation, Washington, DC 2018
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
id okr-10986-31056
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spelling okr-10986-310562021-05-25T09:20:58Z Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group Ahmad, Reyaz A. Reed, Laird Zhang, Rong PRIVATE EQUITY VENTURE CAPITAL EMERGING MARKET ECONOMIES ENVIRONMENTAL SUSTAINABILITY ECOTECHNOLOGY FUND RESPONSIBLE INVESTMENT 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. 2018-12-20T20:10:38Z 2018-12-20T20:10:38Z 2018 Working Paper 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 English CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo International Finance Corporation International Finance Corporation, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PRIVATE EQUITY
VENTURE CAPITAL
EMERGING MARKET ECONOMIES
ENVIRONMENTAL SUSTAINABILITY
ECOTECHNOLOGY FUND
RESPONSIBLE INVESTMENT
spellingShingle PRIVATE EQUITY
VENTURE CAPITAL
EMERGING MARKET ECONOMIES
ENVIRONMENTAL SUSTAINABILITY
ECOTECHNOLOGY FUND
RESPONSIBLE INVESTMENT
Ahmad, Reyaz A.
Reed, Laird
Zhang, Rong
Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
description 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.
format Working Paper
author Ahmad, Reyaz A.
Reed, Laird
Zhang, Rong
author_facet Ahmad, Reyaz A.
Reed, Laird
Zhang, Rong
author_sort Ahmad, Reyaz A.
title Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
title_short Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
title_full Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
title_fullStr Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
title_full_unstemmed Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment : Input Paper for the G-20 Sustainable Finance Study Group
title_sort private equity and venture capital’s role in catalyzing sustainable investment : input paper for the g-20 sustainable finance study group
publisher International Finance Corporation, Washington, DC
publishDate 2018
url 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
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