Private equity: ESG’s natural home?
Private equity has been slow to join the ESG revolution. More firms are waking up to the opportunities on offer as well as the downside risks.
According to Andrea Bonomi, private equity is “a natural home” for environmental, social and governance (ESG) activities. “We are longer-term investors,” he says. “We have to be able to hold our businesses for 10 years and over that timeframe no one can ignore ESG.”
The chairman and founder of 31-year-old private equity group InvestIndustrial, which famously rescued Italian motorbike maker Ducati and exited an investment in Aston Martin last year, Bonomi was one of the first to bring sustainability into the mainstream of private equity.