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PRIVATE EQUITY FIRMS

A COMPARATIVE STUDY OF THE TOP 5

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1.BLACKSTONE

2.KKR AND CO.INC

3.CVC CAPITAL PARTNERS

5.THOMA BRAVO

4.THE CARLYLE GROUP INC.

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BLACKSTONE

  • Blackstone is an alternative investment manager headquartered in New York which invests globally
  • It invests in Hedge Funds, Real Estate, Infrastructure such as that of energy, Life Sciences and Tech and Innovation
  • Blackstone’s clientele includes Institutional Investors such as commercial banks, pension funds, insurance companies etc

Firm Overview:

AUM: 915B$

Portfolio Companies:106

Year Founded:1985

Company in numbers (figures as per 2021)

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Social

Environmental

  • Blackstone launched the Career Pathways pilot program, creating economic opportunity across their portfolio through career mobility and ensuring select portfolio companies have access to the largest pool of talent. They have achieved their goal of hiring over 100,000 veterans, veteran spouses and caregivers at their portfolio companies since 2013.
  • DESOTEC is a European environmental services company that creates innovative circular filtration solutions that reduce waste and enable cleaner water, air and soil. Acquired by Blackstone in March 2021, DESOTEC’s fleet of approximately 2,700 mobile filters is one of the largest of its kind in Europe.
  • Across their recent private equity investments Blackstone wishes to invest in diverse leaders and have invested over $10 billion in companies led by women CEOs since 2019
  • In 2021, Blackstone committed to invest $500 million to grow Array Technologies, one of the world’s largest manufacturers of utility-scale solar tracker technology and ground-mounted systems. With efficient installation and terrain flexibility coupled with high reliability, durability and performance, Array delivers a lower-levelized cost of energy

Blackstone’s ESG approach

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KKR AND CO.INC

  • Kkr and Co. Inc is an alternative investment firm headquartered in New York which invests globally
  • The firm invests in multiple assets such as Private equity, Tech, Healthcare, Real Estate, Infrastructure, Credit, Hedge Funds and Capital Markets
  • Their investors include institutional investors
  • KKR and Co believes in investing in assets with limited downside risks

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Company in numbers (figures as per 2021)

Firm Overview:

AUM: 459B$

Portfolio Companies:109

Year Founded:1976

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KKR’S ESG APPROACH

Social

Environment

  • Diversity is one of KKR’s core values. In the year 2020 KKR added more than 100 diverse board members to the companies they control in North America; as of July 2021, each company has at least two diverse board members, with the average being three.
  • KKR has engaged with BSR to provide an external perspective on KKR’s impact investments and reporting frameworks. BSR is a global nonprofit organization that seeks to catalyze change within business by integrating sustainability strategies and operations. It also seeks to promote collaboration among companies and their stakeholders for systemic progress toward a just and sustainable world. KKR has been a member of the BSR network since 2010 and has worked closely with the BSR team on multiple ESG-related programs during that time.
  • Since COVID-19 has challenged many of KKR’s employees it has highlighted the need for support. To help for the same KKR offers a suite of programs and tools to help its employees make informed health and wellness decisions. These resources include physical health coaches, virtual access to mental health support, and options for meditation and stress management.
  • Since 2011, KKR has deployed more than $4.7 billion of total equity into renewable assets such as solar and wind, which have a power generation capacity of 12.5 GW, as of December 31, 2020. These renewable investments, including district heating assets, have a combined enterprise value exceeding $19.5 billion. As of April 2021, KKR was the ninth largest owner of solar assets in the United States.

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CVC CAPITAL PARTNERS

  • CVC Capital Partners is a an alternative investment firm headquartered in Luxembourg which invests globally
  • CVC’s Private Equity platform managing €94B of its assets
  • Despite more than 75% of its assets being that of Private Equity CVC also invests in credit
  • Majority of CVCS investors are Pension Funds

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Company in numbers (figures as per 2021)

Firm Overview:

AUM: 130B$

Portfolio Companies:187

Year Founded:1981

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CVC’S ESG APPROACH

Social

Environment

  • In the year 2016 CVC invested in PETCO and worked with the company to reach its goal of improving racial equity, diversity, inclusion and belonging
  • CVC considers global warming a pressing issue and to combat the same they aim at reducing their carbon emissions
  • They measure their emissions yearly and try to compensate for their emissions by working with Climate Care to support carbon reduction projects globally

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  • To do the same it decided to ensure that over 50 percent of its directors , new hires and promotions come from underrepresented populations.

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  • To track their emissions CVC also partnered with one of their portfolio companies Ecovadis that works towards evaluating and improving environmental and social performance across their global supply chains.

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THE CARLYLE GROUP INC.

  • The Carlyle Group is a global investment firm headquartered in Washington DC
  • Carlyle invests in private equity , global credit and private equity solutions
  • 50% of its total assets are that of private equity investments
  • Carlyle believes in sustainability and attempts to do its part by funding research or investing in companies that have the same vision as theirs with respect to the environment

Company in numbers (figures as per 2021)

Firm Overview:

AUM: 325B$

Portfolio Companies:270

Year Founded:1987

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CARLYLE’S ESG APPROACH

SOCIAL

ENVIRONMENT

  • Carlyle donated more than $580,000 to over 250 non-profit organizations during the pandemic. Carlyle matched over 800 of these donations up to $2,000 in philanthropic gifts to charitable organizations per employee each year under their corporate matching policy
  • Carlyle partnered with Neptune Energy, a global exploration and production (E&P) company leading. the industry on energy efficiency and carbon emissions. With the help of Carlyle Neptune was able to do research extensively and make use of the data obtained and come up with solutions to reach net zero methane emissions target by 2030.

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  • Caryle has invested in pdd a company that works in the healthcare sector. Like Carlyle PPD takes an expansive view of employee wellness, focusing not only on the physical, but also on the financial, emotional, and social wellbeing of its employees
  • In the year 2019 Carlyle invested in Weinman a company that provides cleaning products for homes. Carlyle saw scope for the products in a sustainable cleaning products market due to evolving consumer demand. With the support of Carlyles ESG team Weinman succeeded in having four of its products certified “EPA SAFER CHOICE” and nine of its products which were sold at target were awarded “TARGET CLEAN” icon. Weinman also changed its packaging to that which could be recycled easily and has also added greener alternatives to its product line.

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THOMA BRAVO

  • Thoma Bravo is an alternative investment firm which invests across the software and technology industry
  • It is headquartered in Chicago and its uses the build and buy strategy to invest in companies
  • Its $103B assets include private equity as well as credit investments
  • Thoma Bravos portfolio companies are a reflection of its ideologies with reference to ESG

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Company in numbers (figures as per 2021)

Firm Overview:

AUM:103B$

Portfolio Companies:60

Year Founded:2008

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THOMA BRAVOS’S ESG APPROACH

ENVIRONMENT

SOCIAL

  • Flexera is a Thoma Bravo portfolio company developed an environmental management plan that established a baseline for energy consumption and Scope 2 greenhouse gas emissions. The plan also addresses waste management and outlines baseline efficiency goals.

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  • JD POWER a Thoma Bravo company has a diversity, equity and inclusion committee which focuses on social awareness issues. The committees efforts have included unbiased training for all employees, hosting a session on hatred against Asians and the inclusion of Juneteenth as a company holiday.
  • Along with

Real Page yet another Thoma Bravo company received the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR Partner of the Year award in April 2021for its achievements in driving innovative sustainability and green operations that bring solutions to the multifamily housing industry, from property managers to residents, creating better overall living experiences through technology by saving electricity, water and natural gas.

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  • Along with working for the environment RealPage has also made significant strides to create a better working environment for its employees. RealPage has delivered unconscious bias training from the executive management committee to all its managers. It also supports employee resource groups (ERGs) for Black, Latino, Women, Asian and LGBTQ employees in career development and other outreach efforts.

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CONCLUSION

To summarise one observes that every private equity firm big or small is now looking at its ESG strategies more closely then ever. Extra effort is being put towards working for the environment as the sustainability market has trajected upwards in the last two years. The evolving consumer demand has provided incentive to these firms to take an in depth look in their own as well as their portfolio companies sustainability practices. Many firms especially post the pandemic have opened their eyes towards the global climate crisis and are attempting to do their part by investing smartly.

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THANK YOU

SOMEONE@EXAMPLE.COM

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