Green private equity is on the agenda of virtually all institutional investors, with more than 90 per cent wanting exposure to the sector, according to a new survey of 110 institutional investors conducted by New Energy World Network, a publishing and events company focused on green investments.
The level of interest and commitment varies markedly across institutional investors, with most taking a cautious but positive step into the green sector. However, there is strong expectation in the private equity industry that the performance of green investments will improve over the next few years and that increased institutional allocations will follow. The challenge for green private equity managers is to accelerate the current levels of interest and future expectations into actual commitments into their funds sooner rather than later.
It is clear that these LPs are giving much consideration to their green investment strategies but are holding back until they have more positive performance information on which to base their investment decisions and have overcome a range of other concerns and obstacles.