By Andrew Malk, Founder and Managing Partner of Malk Sustainability Partners (MSP)
Part I: Introduction to Environmentally-Driven Value Creation for General Partners
With the recent presidential campaign attention paid to Bain Capital, it seems likely that 2012 will be the year that Americans become better acquainted with the private equity sector. Despite managing hundreds of billions of dollars of capital, the practices and often the very existence of fund managers such as TPG and the Carlyle Group are largely unknown to the general public. However, as election buzz ramps up in a year where the economy is the primary focus we can expect this to change. As Charles Riley of CNNMoney noted, “…The new hot-button campaign issue is private equity.”
As private equity fund managers or general partners (often referred to as GPs) become better known to the public, now is an opportune time for these investment professionals to consider sustainability initiatives as a driver of value creation. But while private equity sustainability strategies will improve the public image for the sector, more importantly these actions drive returns for GPs and have the potential to accelerate deployment of sustainability practices.