Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Categories
Discover our Courses
Featured Pathways
More pathways
Banking Essentials - Part I
This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.
Greenwashing
Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.
More pathways
Ready to get started?
Plans & Membership
Find the right plan for you
Our Platform
Expert led content
+1,000 expert presented, on-demand video modules
Learning analytics
Keep track of learning progress with our comprehensive data
Interactive learning
Engage with our video hotspots and knowledge check-ins
Testing & certification
Gain CPD / CPE credits and professional certification
Managed learning
Build, scale and manage your organisation’s learning
Integrations
Connect Finance Unlocked to your current platform
Featured Content
More featured content
Tackling the Cost of Living Crisis
In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.
CSR and Sustainability in Financial Services
In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.
More featured content
Ready to get started?
Our Solutions
About Us
Testimonials
More testimonials
Mark Homans
Our sky high NPS following learner feedback speaks for itself - this platform has delivered a lot of value.
Fiona Quinn
Learning is accessible and the tool assists in the continued development of all our employees. It is a fantastic tool for our business!
More testimonials
Ready to get started?
Incorporating ESG in to Private Equity
Gavin Ryan
25 years: Private equity & banking
Private equity is taking into account ESG values in its investment decisions and in how it manages its portfolio companies. In this video, Gavin outlines how ESG is monitored and how the investment process works within private equity.
Private equity is taking into account ESG values in its investment decisions and in how it manages its portfolio companies. In this video, Gavin outlines how ESG is monitored and how the investment process works within private equity.
Join now to start learning today
Finance Unlocked is the video learning platform built for finance professionals.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Incorporating ESG in to Private Equity
13 mins 31 secs
The trend of incorporating ESG considerations in investment decisions has existed for many years but has accelerated in the last ten, affecting private equity along with other asset classes. Most PE firms view ESG incorporation as a compliance rather than a value adding exercise; part of the reason for this is the difficulty in directly measuring its financial impact. There are different ESG standards in circulation, making it a continuing challenge for all but the big firms to practically adopt it.
Key learning objectives:
Understand how to measure the impact of ESG
Identify the sources of ESG principles
Outline the success factors in implementing ESG policies
Join now to watch
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Is ESG compliance or Value Addition?
A study of ESG in private equity made a few years ago, found that although 70% of GPs included ESG management in their due diligence at investment, only 15% attempted to calculate the value they created through ESG activity in their investments. This suggests that the private equity industry still views ESG as a risk management issue.
ESG proponents argue that value is created by increased sales due to access to new ESG conscious markets, by:
- Cost savings from things like better energy efficiency
- Innovation as companies design new ESG conscious products
- The productivity of increased employee motivation and upgraded supply chains
- Brand enhancement as the company is considered more highly
- Better capital access as capital markets pay more attention to companies’ ESG policies
How to incorporate ESG in practise?
It requires quite some effort to study and get a handle on what is really needed to be done in practise, if you are a private equity fund manager interested in integrating ESG into your strategy. Fortunately, several industry players have taken it upon themselves to facilitate this, both on a not for profit and a for profit basis. The Commonwealth Development Corporation ESG Toolkit was published in 2010. This takes the form of a kind of manual with procedures and templates which a GP can follow. There are some commercial products which attempt to quantify ESG value added by using a system of Key Performance Indicators or KPIs.How does ESG fit into the PE investment process?
The three principal ways are:
- The incorporation of an ESG due diligence screening system and checklist as part of the process conducted by the investment team
- Involving an in-house team specifically dedicated to ESG matters
- Involving an external specialist consultant
Post investment, one of the main questions will be whether the GP will work on ESG upgrading on a company by company basis, or have some kind of integrated system which it will roll out across all the companies.
Join now to watch
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
Gavin Ryan
Related videos
How does Venture Capital analyse an investment?
When valuing early-stage businesses, analysts cannot rely on things like discounted cash flow figures as companies at seed stage usually have not yet made revenue. Alexandra discusses the three pillars that venture capitalists look at when evaluating investment opportunities: Product, Market, and the Team.
Alexandra Perez • 08:59
Private Equity Deal Structuring
A private equity investor is looking to deploy flexibility in deal structuring, to give him a competitive advantage over other, more constrained investors. Gavin will discuss the extent of this flexibility by describing the approach of private equity investors and some of the financial and non financial instruments included in a deal.
Gavin Ryan • 10:00