Real Deals: LPs are riding shotgun on ESG

Jon Fredrik Vassengen, manager and compliance officer at Argentum. Photo: Ilja C. Hendel

In the latest version of the Real Deals magazine, Argentum is interviewed on how LPs are increasingly taking a front seat and giving GPs directions on ESG.

Jon Fredrik Vassengen, manager at Argentum, notes that while LPs can never go so far as putting a hand on the wheel, there are some approaches one can take to make sure GPs are properly set up and headed in the right direction before any investment is made.

“It is important to have a dialogue with the GP and do analysis before we make the investment. Then you get a good view on whether or not they take ESG seriously,” said Vassengen.

Vassengen acknowledges that while most GPs are willing, some are lagging behind on ESG. In these scenarios, he advocates a collaborative approach.

“We can be partners in exploring the different guidelines that are in the market, to raise awareness among GPs on upcoming issues,” he said.

Vassengen adds that Argentum at times supports GPs in establishing their reporting and ESG guidelines, in addition to sharing insights from what we see other GPs having success with.

Argentum routinely updates and publish side letters detailing precisely what we are restricted from investing in. Read our latest ESG report here.

Read the full Real Deals story here (behind paywall).