Manager assessments in private markets
Explore how ESG practices are evolving among private markets managers globally and across Europe, the US and Asia, including developments in climate and biodiversity.
Private markets
LGT Capital Partners captures complementary opportunities in private markets across primary funds, secondary transactions and direct investments while integrating ESG throughout the investment process. We invest across the lifecycle of private equity strategies from venture capital to buyout and special situations as well as in infrastructure, real estate and private credit.
A long-term view
Private equity accounts for the largest share of our private markets manager relationships and we have maintained ESG ratings for these managers over many years, allowing us to analyze ESG trends and developments over time.
At a global level, we have witnessed a further increase in managers demonstrating very good ESG practices in 2026. The adoption of ESG across both business operations and investment processes has continued to increase in all major regions, including Europe, Asia and the US.
Improvement in private equity manager ESG assessments globally
Source: LGT Capital Partners. ESG rating assigned by LGT. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue.
Regional perspectives
Europe
European private markets managers continue to demonstrate strong ESG integration, with practices increasingly institutionalized across investment processes and operations.
ESG manager assessments in Europe
Source: LGT Capital Partners. ESG rating assigned by LGT. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue.
US
The 2026 results for US managers show a mixed picture, with progress in selected areas alongside declines in others. Biodiversity integration shows the clearest improvement, while commitments to DEI and its integration into investment processes declined.
ESG manager assessments in the US
Source: LGT Capital Partners. ESG rating assigned by LGT. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue.
Asia
Asia-based managers recorded improvements in a number of areas in 2026, particularly around climate and biodiversity, while developments across other indicators remained mixed.
Source: LGT Capital Partners. ESG rating assigned by LGT. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue.
Climate and biodiversity in private markets
Climate remains the most advanced and consistently embedded dimension of ESG integration in private markets. Across our different regions, we continue to see strong manager commitment to incorporating climate considerations into due diligence, investment decision-making, value creation and reporting.
At the same time, biodiversity is becoming a more prominent part of ESG assessments. While biodiversity practices are still less mature than climate-related practices, the proportion of managers considering biodiversity in their ESG policy has continued to increase. This may reflect a broader market shift towards a more integrated understanding of environmental risks, including the links between climate change, nature loss, resource use and long-term asset resilience.
For some private markets investors, these topics are particularly relevant in asset classes with direct exposure to physical assets, such as infrastructure and real estate. They are also highly relevant in sectors and business activities linked to natural resources, energy systems, water use and supply chains. In these areas, environmental factors can influence operating costs, regulatory exposure, asset values and long-term resilience.
TCFD & TNFD Report 2025
Our TCFD & TNFD Report 2025 brings together climate- and nature-related disclosures across governance, strategy, risk management, metrics and targets.
Read the New Mountain Capital / Azuria Water Solutions case study
New Mountain Capital is a US-based private equity firm with a sector-driven investment approach targeting defensive growth industries with long-term value creation potential. Its investment in Azuria Water Solutions illustrates how environmental considerations can be integrated into private markets investing and translated into tangible outcomes.
