Published online by Cambridge University Press: 18 May 2023
In this article John Franssen, Head of Research at Travers Smith LLP, gives an overview of what private equity is (including a brief glossary of some key terms), how private equity invests, the type of work lawyers in private practice are involved in and some of the key resources that they need and that are available. This article will also highlight the growing importance of environmental, social, and governance (ESG) and sustainability investment for private equity managers.
1 IbisWorld, ‘Private Equity in the UK December 2021'.
2 Simon Witney, Corporate Governance and Responsible Investment in Private Equity (Cambridge University Press 2021) 5.
3 Private Equity International, ‘The world's largest private equity firms: PEI 300’ <www.privateequityinternational.com/pei-300/> accessed 7 November 2022.
4 Definitions sourced from PitchBook <https://pitchbook.com/blog/private-equity-and-venture-capital-glossary>, Preqin <https://docs.preqin.com/pro/Preqin-Glossary.pdf> and LDC <https://ldc.co.uk/glossary/> accessed 10 November 2022.
5 'Sustainability in private equity’ <www.wtwco.com/en-GB/Insights/2022/11/sustainability-in-private-equity> accessed 14 November 2022 and ‘ESG and the SDGs: insights from private equity managers 2020’ <www.lgtcp.com/shared/.content/publikationen/cp/esg_download/ESG-to-SDGs-Manager-survey_en.pdf> accessed 14 November 2022.
6 'Sustainable investing at BlackRock’ <www.blackrock.com/ch/individual/en/themes/sustainable-investing> accessed 8 November 2022.
7 Patrick Temple-West, ‘U.S. Republicans pull $1bn from BlackRock over ESG investing concerns’ Financial Times (London, 9 October 2022) <www.ft.com/content/41de28af-a487-473e-bc17-5e8cb71f4ced>.
8 David Thomas, ‘Senate Republicans warn U.S. law firms over ESG advice’ Reuters (4 November 2022) <www.reuters.com/legal/government/senate-republicans-warn-us-law-firms-over-esg-advice-2022-11-04/>.