"In private equity, ESG due diligence isn't a luxury—it's a necessity, essential for mitigating risks, attracting responsible investors, and sustaining growth."
The core challenge in any PE deal is maximizing profitability, making risk mitigation crucial. Thorough and robust due diligence is invaluable, helping investors pinpoint various potential risks, including financial, tax, and IT concerns. Moreover, it is essential to consider ESG risk factors, given the increasing prominence of ESG legislation and directives worldwide. Besides that, a lack of ESG performance improvements is the most dominant reason Limited Partners walk away from investments (Bain & Company, 2022).
In general, General Partners face two main challenges:
- Difficulty quantifying and monitoring ESG Performance
- A lack of harmonized ESG Reporting Standards
Good Growth Collective is your ESG Due Diligence expert that can add immediate value.
What we do
Discover how we mitigate unnecessary investment risk.
Performing ESG Due Diligence on your target company
Get an analysis of your portfolio company followed by the implementation and communication process of a tailored ESG strategy
Take your investments to the next level
Working with us future-proofs your investments.
Better financial returns
Unnecessary investment risk mitigation
Alignment with LP demands for responsible investments (SFDR)
Improved regulatory compliance
Room for growth and innovation
Cost-saving opportunities and efficiency improvements
Broader appeal to investors in the increasingly ESG-focused market
Streamlined exit processes to meet buyer and investor expectations
Strengthened brand reputation
Increased stakeholder trust
*in-person meetings take place in our Amsterdam office on Warmoesstraat 149-151