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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International Finance Corporation, Washington, DC
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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 |
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topic |
PRIVATE EQUITY VENTURE CAPITAL EMERGING MARKET ECONOMIES ENVIRONMENTAL SUSTAINABILITY ECOTECHNOLOGY FUND RESPONSIBLE INVESTMENT |
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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 |
_version_ |
1764473515337056256 |