Apex Features in Preqin APAC Innovation Report
11 September 2020
Apex features in the Preqin Markets in Focus Report looking at the role of technology in ESG for Private Equity and Venture Capital industries in Asia-Pacific.
“Going forward, any ESG solution will need technology at its heart to drive informed action.” – Andy Pits-Tucker, Managing Director, ESG Ratings & Advisory and Ashmita Chhabra, Managing Director, Business Development, APAC
Preqin’s latest Markets in Focus Report looks at the innovation being driven by Private Equity and Venture Capital investors in Asia-Pacific.
Against a backdrop of escalating geopolitical tensions and huge macroeconomic challenges, not only in Asia-Pacific but globally, Private Equity and Venture Capital investors continue to support the growth and transformation of key industries and fuel the development of new ideas in this region.
For this report, Preqin spoke with Apex’s Andy Pitts-Tucker, Managing Director, ESG Ratings & Advisory and Ashmita Chhabra, Managing Director, Business Development, APAC on why investors need to embrace technology to enhance their understanding of ESG. ESG investment in the private capital industry has become increasingly sophisticated – and now firms need a scalable, ‘single-source’ solution.
The drivers of the growth of ESG in private markets can be placed into three categories: First, there is a growing fiduciary and regulatory duty for Private Equity and Venture Capital firms to meet the demands of institutional investors. Second, more fund managers now realised that focusing their investment strategies along ESG criteria has the potential to drive not only positive change, but also attractive returns. Lastly, GPs have realized that many ESG concepts encourage operational best practice and build more resilient (and profitable) companies.
The increased global awareness is swiftly transforming ESG from a ‘nice to have’ into a ‘need to do’ for the Private Equity and Venture Capital industry.
In the article Andy and Ashmita discuss:
- How ESG investment has changed in recent years;
- The role of technology in facilitating ESG investment for PE and VC; and
- Give practical advice on how firms should select their technology partners.
On the role of technology in ESG, Andy Pitts-Tucker and Ashmita Chhabra comment: “Firms need to strike a sensitive balance between automation and human interaction when seeking an ESG solution. You need to blend the cost-efficiency of AI-driven software with the high customization and value-added capabilities of human consultancy. Ultimately, you need an end-to-end, single-source solution to ensure consistency, coherence, and accuracy at the scale you want to operate at – from regional all the way up to global.”
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