Institutional Investor (July 3)
“In the often dogmatic debate over whether using environmental, social, and governance factors helps or hurts investment returns, neither side is going to cheer the findings of a recent Preqin report: ESG didn’t matter.” The analysis of 11,000 funds found “average performance of ESG funds was 13.5 percent, compared with 15.0 percent for all private capital funds,” a difference that is not statistically significant. Moreover, “the results were similar even after accounting for different asset classes.”
Tags: 13.5%, 15.0%, Asset classes, Debate, Dogmatic, ESG funds, Helps, Hurts, Investment returns, Performance, Preqin, Private capital
Institutional Investor (February 23)
As private capital firms accumulate extra funds, the growth in “dry-powder” has caused considerable alarm. Uninvested capital expanded 26.8% in 2015 alone. According to McKinsey & Co., there really isn’t that much to worry about. Though “uninvested capital in the private markets has reached $1.6 trillion,” it “hasn’t outpaced growth in deal volumes.”
Tags: Capital, Deal volumes, Dry-powder, Funds, Growth, Markets, McKinsey, Private capital, Uninvested
The Economist (March 22)
“Global spending on basic infrastructure—transport, power, water and communications—currently amounts to $2.7 trillion a year when it ought to be $3.7 trillion. The gap is almost as big as South Korea’s GDP. And it is likely to grow fast.” To close the gap, governments need to step forward, and new ways need to be found to coax private capital investment in infrastructure.
Tags: Communications, Gap, GDP, Government, Infrastructure, Investment, Power, Private capital, South Korea, Spending, Transport, Water
