IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v90y2023ics1057521923004404.html
   My bibliography  Save this article

ESG positioning in private infrastructure fundraising

Author

Listed:
  • Duncombe, Samuel
  • Park, Min
  • Tarsalewska, Monika
  • Trojanowski, Grzegorz

Abstract

We examine if environmental, social and governance (ESG) positioning by private equity infrastructure funds affects fundraising success. We use novel hand-collected data from a proprietary sample of fund marketing documents. By adapting methodologies from the extant literature on private equity fundraising, we directly address the fundraising event rather than the time between successor funds. Our results from private equity infrastructure fundraising events between 2006 and 2021 indicate that ESG positioning in fund marketing documents does not have a significant impact on fundraising success. This is an important finding as it suggests that investors do not respond to ESG-related claims in marketing materials at the fund level. However, there is some evidence of a weak positive relationship between ESG positioning and fundraising success that we observe in the earlier sample period that has dissipated in more recent years. This might be explained by firms trying to materialize value from “cheap-talk” due to first mover advantage.

Suggested Citation

  • Duncombe, Samuel & Park, Min & Tarsalewska, Monika & Trojanowski, Grzegorz, 2023. "ESG positioning in private infrastructure fundraising," International Review of Financial Analysis, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finana:v:90:y:2023:i:c:s1057521923004404
    DOI: 10.1016/j.irfa.2023.102924
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521923004404
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2023.102924?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Private equity; Infrastructure investment; Fundraising; ESG;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:90:y:2023:i:c:s1057521923004404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.