Fund Finance Partners outlined why large and small founder- or employee-owned companies seeking institutional capital need to assess how an institutional asset manager would view the company through their environmental, social, and corporate governance ("ESG") policies. With the development of positive ESG incentives, institutional asset managers are increasingly developing ESG policies that require them to screen potential investments for ESG risk or integrate ESG opportunities into investment strategies. As a result, these companies seeking capital can present their ESG strengths and their plans to address potential ESG weaknesses while distinguishing themselves from numerous other companies competing for that capital. This forward-thinking strategy for business owners can mean the difference between a term sheet or letter of intent, or a pass by the asset manager. As institutional asset managers seek positive incentives for ESG policies, ESG-linked subscription credit lines continue to develop in the fund financing world. Cadwalader's Fund Finance Group has helped clients utilize ESG-linked subscription credit lines to achieve their financial needs.

To see Fund Finance Partners' article, click here.