U.S. Private Equity Firms Endorse Responsibility Guidelines

Members of council back U.N.-established ESG principles

By James Hyatt

The 13 members of the Private Equity Council, among the nation’s largest pools of private capital, have pledged to apply responsible investment guidelines in making their investments.

The agreement reflects discussions between the council and a number of major institutional investors, such as the California Public Employees Retirements Systems,  that often are limited partners in PEC investments.

The guidelines reflect the U.N.-backed Principles for Responsible Investment, and cover environmental, health, safety, labor, governance and social issues.

The PRI initiative, launched in 2006,  has been adopted by a large number of  asset owners, investment managers and professional service groups around the world. The voluntary principles “provide a menu of possible actions” for bringing environmental, social and corporate governance issues into decision making.

Members of the Private Equity Council include Apax Partners; Apollo Global Management LLC; Bain Capital Partners; the Blackstone Group; the Carlyle Group; Hellman and Friedman LLC; Kohlberg Kravis Roberts & Co.; Madison Dearborn Partners; Permira; Providence Equity Partners; Silver Lake, THL Partners; and TPG Capital (formerly Texas Pacific Group).