Cority’s Anne Matusewicz and Giorgia Davidovic recently sat down with Private Equity International to discuss impact funds and Article 9 and how The Sustainable Finance Disclosure Regulation (SFDR) is influencing impacts funds’ processes and priorities as well as LP expectations.
In recent years, the private equity market has witnessed transformations driven by regulatory changes and shifting investor preferences. As a result, new fund structures have emerged to cater to the evolving landscape. Two such structures gaining prominence are SFDR Article 9 funds and Impact funds (the SFDR Article 9 funds refer to a category of funds which comply with certain requirements outlined by the SFDR). While these investment approaches share a common goal of aligning financial investments with sustainability considerations, they differ in their strategies and regulatory frameworks.
Read the full interview to understand:
- The difference between impact funds and Article 9 funds under SFDR
- How SFDR is shaping what impact funds are run
- What impact we expect to see from the SEC’s ESG fund name proposals in the US that would categorize funds
- What concerns there are in the market from managers looking to raise Article 9 funds
- How managers can best approach the need to balance reporting with outcomes
- What the increasing alignment between the ISSB and the GRI mean for investors
- The necessary steps required to launch an Article 9 fund