fund economics

The CIO of impact manager Newmarket Capital said reporting expectations have created additional expenses but offer differentiation.

Tikehau is targeting over €5bn of climate-dedicated AUM by 2025 – of which it has raised about €1.5bn – and is linking its carry to impact.

The asset manager has staked 50% of the carried interest from its €300m debut private equity fund on achieving impact goals.

Hear from one GP who has opted to tie carry to an impact target, and another who believes alignment on impact is naturally built-in to the private equity model.

Pioneering fund managers are making the ultimate GP prize – carried interest – contingent on impact or ESG metrics. In part one of this deep dive, we ask who is doing it and what their motivations are.

Momentum is gathering behind the movement to link carried interest to impact or ESG targets. In the second part of this deep dive, we discover that it is easier said than done.

Could this be the next frontier in tying ESG targets to financial incentives in private funds?

A trickle of fund managers choosing to link carried interest to their impact and ESG targets is good news for private markets, showing the industry is serious about its sustainability goals.

The GP says it will not receive 50% of its carried interest if it fails to meet new fund’s impact goals, which will be verified by an independent third party.

Emerging manager Trill Impact, led by Jan Ståhlberg, aims to 'contribute to a better world and inspire others to follow'.