Preqin

Sustainability

Methodology

In this article:
Introduction

Introduction
Methodologies:
- Asset-level solutions
- Fund-level solutions
- GP-level solutions
- LP-level solutions
Model validation
Appendix

Introduction

Preqin Sustainability endeavors to help a wide range of private market participants navigate the complexity of finding, screening, and evaluating assets, funds, and managers through a sustainability lens, thereby enabling them to make more informed and future-resilient investment decisions. We are also constantly refining our solutions to better cater to customer needs across the investment process.

We leverage our relationships with private market participants to gather sustainability-related data points from every possible area. Where these data points do not exist, we provide their viable estimates, based on multiple auxiliary data sources (both proprietary and public) and innovative models, developed by our Sustainability team. Wherever we see fit to complement or expand the range of solutions we offer, we also partner with expert organizations that have a strong track record in private markets. All our sustainability solutions are built on a foundation of Preqin Pro – the industry’s most comprehensive database of top-quality private market financial data. Our ability to merge informed proxies with financial data enables us to deliver solutions that scale – from a single asset, through portfolio and fund managers, up to the institutional investor level. What we offer is comparable metrics that seamlessly integrate into both fund manager and institutional investor workflows.

While we set no barriers to the availability of our solutions and have often seen clients find new uses for them, the summary below contains common use cases developed to cater to specific customer and market needs:

If you are:

An investor (LP):
  • Fund sourcing – Reduce the amount of time and resources needed to find and compare funds based on bespoke sustainability investment preferences [fund-level solutions]

  • Fund manager due diligence – Reduce the amount of time and resources needed to screen fund managers and contact them [GP-level solutions]

  • Competitor intelligence – Evaluate the strategies and initiatives taken by other LPs as well as the sustainability funds they have previously invested in [LP-level solutions]

  • Asset-level transparency – Get an unbiased view of the underlying assets and evaluate them across a wide range of sustainability indicators, risks, and metrics [asset-level solutions]

  • Fund performance evaluation – Compare the performance of invested sustainability funds against similar sustainability funds through performance benchmarks [fund-level solutions]

A fund manager (GP):
  • Fundraising – Reduce the amount of time and resources needed to find investors, their past investments, and strategies with respect to sustainability [LP-level solutions]

  • Deal sourcing and early due diligence – Expand the watchlist and reduce the time and effort needed to search for relevant deals based on a range of sustainability indicators, risks, and metrics [asset-level solutions]

  • Competitor intelligence and market analysis – Evaluate the strategies and initiatives taken by other GPs, as well as sustainability funds [GP-level solutions]

A consulting partner (SP):
  • Business development – Filter the list of LPs or GPs that are likely to need support in their sustainability integration journeys [LP-level and GP-level solutions]

  • Asset-level transparency – Obtain an initial view across portfolios and how they rank on various sustainability factors [asset-level solutions]

A private company:
  • Fundraising – Gain access to a wide range of GPs to identify a list that is likely to be interested in investing [GP-level solutions]

Alongside the above use cases, we also provide a wide range of thought leadership content that provides a fresh perspective on sustainability for all financial market participants and helps them keep abreast of the latest developments in sustainable investing across alternatives.

Next > Asset-level solutions

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