"What impact-linked carry does is open the door for malperformance to be attributed to the desire to achieve non-financial objectives when impact is not tied to the investment thesis. A GP's activities should be isolated to fiduciary duties."
"In 2019, the Federal Reserve warned SVB about its risk management systems by issuing a “matters requiring attention” citation. Through most of 2022, SVB did not have a risk officer; while some may perceive this as a nonfinancial factor, the reality is the contrary, as a risk officer’s primary role is to mitigate the risk that led to the bank’s downfall."
“I am fortunate to have a tri-sector background across sustainable investments (non-profit, for-profit, and government). This has provided me a unique and comprehensive perspective, stemming from experiences in representing a variety of asset owners.”
“ESG factors in a credit instrument are a lot different than, say, an equity instrument. Even across private equity—venture, buyout, and growth, approaches face different risk and return profiles that influence environmental, social, and governance factors. As a result, each asset class should be viewed and assessed uniquely.”
"In addition to managing climate-related risk, allocators broadly are worried about avoiding greenwashing — marketing investments as more environmentally friendly than they actually are. Siwo said that asset owners can inadvertently further greenwashing when allocating to managers that make unsubstantiated investment claims.
