Navigating ESG Compliance and Profitability for Smaller Private Equity Funds

Smaller private equity funds face increasing challenges in today’s competitive fundraising environment, particularly as larger firms continue to dominate capital allocation. With global private equity fundraising down 30% in 2024, investor confidence remains skewed toward funds with established track records.

However, opportunities exist for smaller funds willing to adapt. Specialising in niche tech sub-sectors, demonstrating profitable exits, and embracing ESG focused investment strategies can help attract investors. Yet, regulatory hurdles, including complex compliance and due diligence requirements, pose significant obstacles. Staying ahead of evolving ESG regulations and enhancing transparency will be critical for success.

Partner James Klein featured in Grip exploring how smaller funds can remain profitable while meeting regulatory challenges in 2025.

Read the full article here: Challenges facing smaller private equity funds | Grip