The average target size for alternatives ESG funds is set to reverse its previous growth trend as investors focus more on performance, a report by Preqin has found.
Aggregate capital targets have fallen from their 2021 peak of $172.7bn, to $108.1bn as of May 2023, despite the number of ESG funds in the private markets space going up. After a turning point in ESG adoption across alternative asset classes in 2022, when fundraising soared to new heights, the report found attention has now re-focused on return generation and value protection in the face of macroeconomic pressure on valuations. "A re-focus on performance after a challenging 2022 may have encouraged some to de-prioritise ESG with fundraising so far in 2023," said Alex Murray head of ...
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