Private equity has a distinct advantage in effectively generating impact:
- Frontier markets have only a limited set of companies listed on public exchanges, with only some of the largest firms represented. Hence, investing in only listed entities misses most impact investing opportunities.
- Private equity enables much more direct influence over both key ESG aspects of businesses and the structuring of business activities towards the target impact mission
Investment choices maximize the impact that a fund can make:
- Choices in fund’s investment strategy
- Fund’s portfolio management approach