NEWS: tale of two markets: Public-markets ESG funds roar, private-market impact funds struggle

Investors continue to pour billions into sustainability-themed stock funds, making “ESG” one of the hottest trends in asset management. But new private impact funds worldwide raised just €10 billion (about $12 billion) last year – less than 30% of the capital raised by new funds in 2019, according to Phenix Capital’s 2021 Impact Fund Universe report.

Investor skittishness affected fundraising early in the year as the pandemic took hold and the shutdown of roadshows made it difficult for managers to meet with potential investors. “In impact investing, there are a lot of younger fund managers who don’t have a fully established investor base, and for them to be unable to travel and hold meetings makes it really difficult to raise capital,” Phenix’s Dirk Meuleman told ImpactAlpha.

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