Alternative assets data, tools, and insights provider Preqin’s ‘ESG in Alternatives 2023’ report found the annual capital raised by ESG alternatives funds tripled between 2020 and 2022. Europe-based ESG funds secured 79% of the US$92 billion – which jumped from US$29 billion in 2022 – followed by North America (14%) and APAC (7%). The report also said the average ESG fund size had increased from US$400 million in 2017 to almost US$600 million in 2022. In North America, the report noted the increased traction of impact strategies, with fundraising across alternatives growing from US$2.6 billion in 2019 to US$33.6 billion in 2022. Alex Murray, Head of Real Assets at Preqin, said: “This report comes at a time when ESG faces new challenges from increasingly vocal and politicised critics. impact investing is emerging as its own distinct market. Rather than retrenching as many had anticipated, ESG in alternatives is increasingly diverse and sophisticated in what it can offer investors.” A November 2022 survey by Preqin showed that 29% of investors had turned down a deal over ESG concerns, with a further 43% of respondents saying they would do so.
ESG has remained a hot topic in the media this year. This year's ESG in alternatives report gives an overview of relevant ESG updates, and ESG-related strategies to look out for, and breaks down potential risk factors.
— Preqin (@Preqin) June 22, 2023