16 mei 2024
Davey Kho, Senior Portfolio Manager for Private Equity and Infrastructure at MN, elaborated on investing in the circular economy during a panel at the Impact Investor Summit in London. The conference took place on May 14th and 15th.
Our clients PMT, PME, and MITT have ambitious plans to increase their investments in the circular economy over the next few years.
It’s evident that circular business models offer substantial growth potential while promoting sustainability. However, there’s a challenge: investing in circular business models remains relatively new for the financial sector.
Private equity funds specializing in this area are often fledgling, with a limited track record. This makes it more difficult for pension funds to put a lot of capital to work in the space, as they cannot compromise on risk-return.
Davey Kho (second from the left side in the picture) emphasized the need for an alternative due diligence approach during the Impact Investor Summit in London.
Rather than solely relying on a fund’s historical performance, investors could get more comfortable by closely examine recent individual investments and the managers’ track records at previous funds. Secondly institutional investors could closely work together with the managers to make sure the fund and organization adheres to institutional requirements.