Sustainable private market investments and their benefits
A leading globally active sustainable private market investment specialist, we have a clear point of view: consistently taking sustainability criteria into account and successfully creating financial and societal added value at the same time is not a contradiction. In our experience, private market investments, particularly in the SME sector, can unlock additional growth potential for an institutional investment portfolio – and diversify it more broadly. Sustainable investments are also attractive from a risk management perspective. The portfolio becomes more resilient overall, especially to secular trends.
Our quality-focused approach identifies attractive business models and differentiating strategies that generate additional returns and reduce risks by integrating sustainability factors.
Sustainable investing in attractive markets
ESG, impact and sustainable investments have become mainstream. However, most of these investments rely on conventional strategies and traditional investments with a primary focus on exclusion criteria. We work differently. Our quality-focused approach targets attractive business models and differentiating strategies that generate additional returns and reduce risk through the integration of sustainability factors. We emphasize private equity investments in successful companies in high-growth, profitable market segments driven by sustainability megatrends. On the other hand, social infrastructure such as hospitals and schools are very crisis-proof, cover basic needs and can offer consistently high distributions. Natural forests with mixed species are also real value investments providing low correlation with other asset classes. Moreover they offer additional societal benefits when sustainable timber production goes hand in hand with long-term forest protection and job creation. EBG gives investors insight and access to the world's best special funds, which has become increasingly challenging for new investors.
Systematic, multi-stage and diligent – our investment process
From strategy development to global sourcing to reporting: EBG identifies opportunities for sustainable portfolio diversification in a multi-stage process. This begins by assessing the individual client’s situation and developing an optimal implementation concept. Execution is based on leveraging our long-standing and carefully maintained network to continuously screen the global universe for sustainable investments. We prepare a short list of investments that combine return, risk and impact in an attractive manner and identify the most suitable for the client's profile and individual requirements. We then conduct in-depth initial due diligence. When the results of preliminary diligence results are favorable, four to six experienced experts then proceed to thorough and comprehensive due diligence. We always spend time on-site to develop a profound understanding of the manager, its culture and how it creates financial returns and impact by integrating sustainability. Following the subscription, there is a seamless transition to continuous monitoring and regular fund manager engagement. Thorough documentation, detailed quarterly reports and a high degree of transparency down to the level of individual assets, accompany the process throughout.