Impact Private Equity

What we do

As we collectively move towards new frontiers to address the challenges of our time, we seek to achieve a measurable positive social or environmental impact while also aiming to deliver strong private equity returns across our impact investments. Our impact activities encompass direct co-investments into impactful businesses, primary fund investments and secondaries. These opportunities are led by experienced investment teams with functional expertise across these strategies as well as in-depth domain expertise in our core sectors, while a dedicated team of impact specialists leads impact measurement and management (IMM).

Our investment and impact professionals are based in hubs around the globe and work closely together to source, evaluate, execute and manage private equity impact investments. We invest in opportunities that demonstrate alignment with the UN Sustainable Development Goals (UN SDGs) across three key areas: climate action, healthcare and inclusive growth.

Our approach – why partner with us

Our impact investments are fully embedded in our private equity investment activities and benefit from the insights and expertise of LGT Capital Partners’ global platform. We follow the same stringent underwriting process in impact investing as with our traditional private equity investments. In parallel, every impact investment follows a rigorous IMM process.

Our approach to impact investing is built on the following core pillars:

• Differentiated access – LGT Capital Partners’ broad network of manager relationships allows us to access high-quality private equity impact opportunities. The wide base of relationships also generates significant impact co-investment deal flow, allowing us to maintain high selectivity and discipline across both impact and investment standards.  
• Investing in line with our core competencies – We focus on impact investments in regions and sectors where we have deep ties and strong core relationships, extensive investment expertise, proprietary insights and a demonstrated track record. The strategy targets buyout and growth opportunities in developed and developing markets.
• Rigorous impact measurement and management – Our structured IMM process includes a comprehensive assessment of the alignment between impact and financial returns, the depth and the inclusiveness of impact generated, as well as any negative impact that the business creates. This approach is aligned with established industry standards such as those set by the Impact Management Project and the Operating Principles for Impact Management. Impact measurement is based on best practices and integrates, amongst others, criteria from IRIS+, a database developed by the Global Impact Investing Network (GIIN), where LGT Capital Partners is a contributing member of the Investors' Council. Beyond the bottom-up impact analysis, the team also leverages artificial intelligence tools to confirm its work.
• Flexible approach to customized impact solutions – We have significant experience in designing and implementing customized solutions and separate accounts for investors looking to access impact investments.

Team – extensive expertise across investment and impact management

The investment team is comprised of professionals with deep impact and underwriting experience and leverages our broad global platform across investment sourcing and execution. In addition, our dedicated team of impact specialists brings deep expertise in impact investing, and leads impact measurement, management and reporting for all impact opportunities.