Opportunities in private equity sustainable investing
Although the environment, education, employment and healthcare are core to everyday life, they are sectors that have been largely underfunded. Investment opportunities can be difficult to come by, but they may be more easily found in private markets.
Fortunately, the global economy is rising to the occasion. Governments and corporations are pledging to do more and helping to create markets for sustainable solutions. Scalable, lasting technological advancements and reduced innovation costs are also driving the world toward resolving these challenges.
Innovation demands push costs down and adoption up
Disruptive forces
Shifting economic power, climate change and resource scarcity, rapid urbanization, demographics and social changes are driving global innovation demands via new technologies.
Rapid cost decline
As new tech breakthroughs meet growing demand, costs decline and may lead to scale.
Parabolic adoption
As costs decline, adoption may increase to meet rising demands.
Considering private equity may afford investors an opportunity to be early adopters in this new wave of high potential and high-growth technology—a time when the greatest shareholder value will likely be created.
Private market investing can provide these pioneering companies with the means to grow further and meet these challenges. However, these areas require expertise. Our experienced private investment managers can potentially help the companies of tomorrow grow and reach their full potential.
Moreover, private equity investors may exert greater influence on companies, which can help to ensure stronger management and anticipated impact.
While past performance is not indicative of future results, private equity investments, though less liquid and higher risk, have historically provided higher returns.1
We can help
If you would like to explore sustainable investing opportunities in private equity, speak to your J.P. Morgan team to determine which strategies would be the most appropriate to help you meet your long-term financial goals.
1Sources: Cambridge Associates LLC, Bloomberg as of June 2022. Past performance is not indicative of future results. Data for buyout and growth equity performance represents the net of fees pooled end-to-end returns based on data compiled from 2,637 global (U.S. and ex U.S.) buyout and growth equity funds tracked by Cambridge Associates LLC. It is not possible to invest directly in an index. The historical returns reflected above are included solely for the purpose of contrasting returns of buyout and growth equity funds with the MSCI ACWI Index over certain time periods.
