London, 25th June 2014 – Pantheon, a leading global private equity fund investor, today reported that early findings from its academic research collaboration suggest that there may be a positive link between management of environmental, social and governance factors and Private Equity returns.
“This initial research is encouraging and indicates that embracing ESG can result in higher performing companies across a number of key measures,” said Dushy Sivanithy, Principal and Co-Chair of Pantheon’s Responsible Investment working group.
In 2012, Pantheon partnered with Dr. Andreas Hoepner, Associate Professor at the ICMA Centre of Henley Business School and Senior Academic Fellow at the United Nations-backed Principles for Responsible Investment, to investigate the impact of good ESG management on Private Equity returns. Based on the data set, today’s preliminary findings show that:
- ESG can contribute to performance;
- Firms included in the research that had better performance also had below average negative ESG news profiles; and
- The data suggests that ESG management has a stronger effect on company valuation and EBITDA than on revenue.
Pantheon’s research collaboration employs Pantheon’s proprietary Private Equity data set, which includes global data on approximately 9,500 portfolio companies built up over 17 years. The research focuses on the period from 2007 and the initial analysis is based on a controlled data sample of 400 firms. The negative news data was sourced from RepRisk, a leading business intelligence provider on ESG risks of both listed and non-listed companies worldwide.
These preliminary results were presented earlier this month. The final results are expected to be available in mid-2015 following robust technical and statistical tests.
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Notes To Editors
Pantheon is a leading global private equity fund investor that invests on behalf of over 400 institutional investors, including public and private pension plans, insurance companies, endowments and foundations. Established over 30 years ago, Pantheon has developed a strong reputation and track record in primary and secondary private asset solutions across all stages and geographies. Its investment solutions include customized separate account programs, regional primary fund programs, secondaries, co-investment and infrastructure programs.
As of December 31, 2013, Pantheon had over $28 billion assets under management and 185 employees, including 69 investment professionals, located across offices in London, San Francisco, New York and Hong Kong.
For more information, please visit www.pantheon.com.
The ICMA Centre
Part of the triple-accredited Henley Business School, the ICMA Centre is the product of the first active collaboration between the securities industry and a university finance department. The Centre has a global reputation for its excellence in undergraduate, postgraduate and executive education, as well as professional and policy development research and consultancy. Situated in the beautiful Whiteknights campus at the University of Reading, the ICMA Centre provides a world-class student experience, state of the art facilities and an excellent employability record.
For more information, please visit www.icmacentre.ac.uk
Amanda McCrystal, Head of Global Marketing and Communications
Tel: +44 207 484 6200