Investment firms known as Private Equity- PE funds that manage a huge volume of capital expected in the middle of the current decade to exceed $8.5tris have the potential to deliver positive changes for the benefit of global society, achieving at the same time the expected target returns set by these investors.
This is mainly due to their first and main reason for operation, which is the detection and finding of investment firms which, with their proper reorganisation, can generate capital funds.
by Thanos S. Chonthrogiannis
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Their main second role is to channel liquidity, lending, and equity into the economies they are active in.
Their third role is the corporate transformation they cause to generate capital.
If these main roles are combined with an investment framework set by the US, EU, China, which directs new investment in issues relating to environmental protection, social cohesion, improving governance, waste management in the circular economy while at the same time producing renewable energy sources.
Assuming, therefore, that the entire global private equity fund industry decides to adopt an investment framework characterised by rules that they will invest in companies that aim to become zero carbon emissions by 2040.
If this investment binding framework for Private Equity Funds included the target already set by The Blackstone Group to reduce emissions in its new acquisitions of 15%, or if it included all ESG criteria as a condition for their investment plans.