December 06, 2022
The popularity of environmental, social, and governance (ESG) investments has been met recently with heightened public scrutiny as investors have begun to question the legitimacy, efficacy, and measurability of ESG. Whereas ESG is often positioned in the market as a strategy for driving better outcomes for people and planet, it is, in reality, a framework for evaluating how environmental, social, and governance factors can impact a company’s financial performance. The interpretation and application of ESG investing has varied across the industry in ways that have left ESG investors without clearly defined criteria around what constitutes an ESG investment or how that investment contributes to social and environmental outcomes.
How, then, should investors seek to invest in alignment with their values? At GEM, we believe that impact investing—when done well—can offer a more intentional and stakeholder-centered solution. Impact investing prioritizes outcomes on people and the planet alongside financial returns, and utilizes a rigorous and consistent measurement framework that provides investors with clarity and confidence around how their investments can deliver meaningful positive impact.
Strong returns from leading university endowments have reignited discussion about how institutions can sustain performance in a shifting market environment. In commentary for The Wall Street Journal, GEM’s Co-CIO, Matt Bank, reflects on how endowment leaders are preparing for more uncertain conditions ahead.
In a recent Q&A with Buyouts’ Chris Witowsky, GEM’s Caroline Dallas, a Director in our Investment Research Group, shared her perspective on how recent private equity market shifts are influencing talent dynamics, emerging manager activity, and LP appetite across the lower mid-market.
Sourcing and manager selection typically get top billing in conversations around private investments, but one underappreciated aspect of a successful private allocation—explored in our recent whitepaper—is the art of pacing commitments to ensure appropriate portfolio allocation.
Let’s start a conversation about how we can help.
