Investments in water and wastewater management are what institutional investors that responded to a Bright Harbor Advisors survey said they are most interested in when seeking exposure to sustainable alternative assets. Bright Harbor, a New York-based placement agent, found that 81 percent of LP respondents have already added a sustainability, impact or ESG (environment, social, governance) mandate to their investment strategy.
Here are more highlights from the survey:
- The 72 LP respondents were from more than 25 countries, but 96 percent are in either North America or Europe. The respondents have a combined private equity allocation of $500 billion and 82 percent manage more than $1 billion in assets.
- Close to a third said they have a team of staff dedicated to sustainable investments, and 20 percent said they have sustainable private fund managers in a dedicated investment bucket.
- Two-thirds of respondents said that measurement of impact is necessary to make sustainable investments.
- Bright Harbor noted potential for bias in their findings considering potential respondents that don’t have a sustainability mandate may have declined to participate.