Our LP level data includes the following sustainability intelligence metrics:
LP sustainability mandates: Find LPs with sustainability mandates, practices and policies aligned with your sustainability objectives.
Sustainability management indicators: Measure the level of disclosure across a set of core sustainability management indicators aligned with leading ESG frameworks and standards, plus see the sustainability management indicators for the fund managers the LP has invested with.
Sustainability affiliations and memberships: Analyze third-party memberships related to funds and evaluate their sustainability commitments.
Sustainability contacts: Access contact details (name, role, email, office location, phone number, and LinkedIn) for dedicated sustainability contacts.
LP sustainability mandates
LP sustainability mandates provide information on the sustainability mandates of institutional investors active in the alternatives market. If you are a fund manager, or a placement agent or prime broker fundraising on their behalf, access to LP sustainability mandates enables you to create target lists of entities who are likely to invest with you.
LP sustainability mandates enables our clients to identify LPs who have announced their commitment to investing in sustainability-aligned funds or assets within the next 12 months. Leveraging our strong client relationships, Preqin’s investor research team collects proprietary information directly from LPs regarding their investment plans for the next 12 months. This dataset includes:
Types of managers they plan to invest with
The number of funds they plan to invest in
Asset classes
Strategies to be employed
Locations and markets
Industries
LP sustainability mandates then builds on this dataset by tagging firms committed to including sustainable investing objectives during the indicated period. Clients get to see a list of entities committed to directing capital towards sustainable investments and a tally of the total proposed allocations.
LP sustainability management indicators
The management indicators component cover any sustainability policies, management practices, and rules of doing business that have been disclosed and updated within the past two years. Fund managers can use the management indicators to pinpoint areas of ESG governance where they are weaker than their peers – and, therefore, where improvements need to be made to attract investors. There are 53 indicators for LPs. By leveraging established ESG frameworks and standards, Preqin has curated a set of core sustainability data points, specifically applicable to private markets. Relying on valuable input from our Sustainability Advisory Council, comprised of more than 50 clients who partner in our research and development program, this product was designed to incorporate and build upon existing domain knowledge. A full list of sources we have curated the management indicators from are included in the appendix.
Sustainability affiliations
To commit to an affiliation, firms need to dedicate time and resources to integrating sustainability into their practices. If you are an institutional investor, the sustainability affiliations component – in conjunction with the management indicators and sustainability contacts – enables you to identify fund managers with sustainability-integrated investment workflows. A Net Zero-related affiliation indicates which institutional investors are committed to emission reduction targets in line with the Paris Agreement. This information enables you to quickly shortlist the funds which track and actively manage their carbon footprints.
Based on their prevalence in the industry, we amassed an extensive dataset tracking 40+ third-party organizations to which LPs and GPs are affiliated. Preqin’s Sustainability research team collects this information from the public domain for both LP and GP sustainability profiles. For each organization we calculate the percentage of the 60k+ LPs and GPs featured on Preqin Pro who are affiliated with it. While conducting this calculation, we consider only firms with at least a single affiliation. The resulting ratio informs our clients about the extent to which the standards promoted by this organization permeate the market. An institutional investor or fund manager’s association with a specific organization can provide further insight into a firm’s sustainability practices, indicating obligations that are perhaps otherwise not publicly disclosed. For a full list of affiliations currently tracked by Preqin please see Appendix.
The sustainability contacts component enables you to directly reach out to key players on the ESG scene, providing a target list of contacts that can be instrumental in your business development. The availability of a sustainability contact is also an indirect indicator of how serious an organization is about the role of sustainability in its investment workflow.
The existence of sustainability teams within fund managers and institutional investor firms is a recent phenomenon. As it becomes more mainstream, we map the presence of sustainability capabilities and expertise within organizations. The sustainability contacts component enables you to not only verify if a firm has a dedicated sustainability team, but also access contact details of various team members. This insight enables you to research individuals’ backgrounds and trace their career paths, as well as gain insight into how the team was created and has grown. This is critical information when it comes to evaluating sustainability capacity and expertise within an organization.
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