The role of leaders in successful climate investment funds
Explore the unique challenges of climate funds and how their success can be ensured through a leadership team with diverse skills and competencies.
The Role of Leaders in Successful Climate Investment Funds
Following suit with public interest in offsetting the effects of climate change, asset owners are looking for new ways to invest their money in ventures that focus on reducing greenhouse gas emissions. As a result, private markets are experiencing unparalleled growth in a category that few investors have yet to master.
While the process of forming energy transition funds may seem similar to any other category within the private market asset class, there are four distinct characteristics that call for a different approach:
When it comes to forming a new fund in more established asset classes, you typically only need one or two reputable investment leaders with excellent track records. However, because of the above complexities, a climate fund requires a carefully curated team of leaders. Piecing this team together can be a bit like solving an intricate puzzle, as these experts need to have complementary skills and perspectives that, together, will give the fund the credibility it needs. We find that the most successful teams usually consist of the following:
For more insights into the vital role of fund leadership in establishing climate-related investments, download our paper “A climate fund is a team sport,” or contact one of our experts.