27 March 2018: Partners Group, a global private markets investment manager, has launched a strategy to address global social and environmental challenges by investing in line with the SDGs. The ‘PG LIFE’ strategy is a blended private markets strategy, and includes investing in private companies and assets for the purpose of contributing to specific SDGs, without compromising financial performance.
André Frei, Partners Group Co-CEO, said his company’s investments are subject to an environmental, social and governance (ESG) integration strategy, which has earned A+ ratings in the UN Principles for Responsible Investment’s (PRI) annual ESG assessment for the past three years. Since the launch of the SDGs, the Partners Group has invested an average of more than US$1 billion annually in companies and assets that are pursuing a strategy consistent with the Goals, particularly SDG 4 (quality education), SDG 3 (good health and well-being), SDG 7 (affordable and clean energy) and SDG 10 (reduced inequalities). In 2015, it supported the launch of PG Impact Investments, a global impact investment firm focusing on finding investment solutions to address the most pressing social challenges.
The PG LIFE strategy was introduced at the Partners Group’s 2018 Annual General Meeting, held in Bürgenstock, Switzerland, from 14-16 March 2018. During the meeting Gordon Brown, UN Special Envoy for Education and former UK Prime Minister, stressed the need for private capital to achieve the SDGs, especially in the areas of education and infrastructure. Vuk Jeremic, President of the 67th session of the UN General Assembly (UNGA), noted that the UN Commission on Trade and Development (UNCTAD) estimates that meeting the SDGs will require US$5-7 trillion in annual investment from 2015 to 2030, of which US$4-6 trillion will be required from private capital sources. He commended the investment strategy, stating that private markets capital is “ideally placed” to contribute to achieving SDGs.
The PG Life strategy was launched following clients’ requests for a mainstream private markets fund that delivers social and environmental impact.
Kevin Lu, Partners Group and chair PG LIFE’s Impact Committee, noted that the strategy has been launched in response to clients’ requests to create a mainstream private markets fund delivering “quantifiable social and environmental impact.” He cited a “genuine interest” from long-term investors in such strategies to complement more traditional impact investment funds, which are usually smaller-scale and focused on niche investments.
Partners Group is assembling an external council to provide advice on PG LIFE’s strategic aspects, including impact measurement methodology. [Partners Group News Story]