Private Funds CFO: How PE fund administrators can facilitate ESG

Authored by: Robert Caporale, President, Strategic & Digital Solutions
Updated on: January 30, 2024

Key to Launching ESG Efforts: Third-Party Fund Administrators 

Companies such as Gen II possess the relationships, data and tech to simplify ESG reporting. 

Providing investors with regular and comprehensive reports on their environmental, social and corporate governance (ESG) is emerging as one of the top issues in the private equity industry, said Robert Caporale, head of corporate development at Gen II, in an article in Private Funds CFO.

He predicted that ESG reporting would become the next front in the sector’s “disclosure wars.” Caporale also outlined the challenges confronting GPs when it comes to ESG. For starters, there’s no universal reporting framework for non-financial KPIs at either the fund or portfolio-company levels.

Don’t start from scratch

So how do private equity sponsors show how they create value and mitigate risk through sustainability practices? Caporale sees an opportunity for GPs to tap third-party fund administrators to quickly ramp up ESG data collection.  Companies like Gen II have already forged the essential relationships, and acquired the necessary technology, know-how, data and experience to assist a GP in forming and implementing an ESG strategy. 

The stakes are higher than ever. Lest we forget, regulators in the U.S. and Europe have for the past several years indicated a willingness to scrutinize ESG investing. Partnering with a fund administrator like Gen II is far more efficient and far less stressful than creating ESG reports in-house from scratch. Read the full article to find out more: How PE fund administrators can facilitate ESG

Published on: August 13, 2021