Environmental, Social and Governance (ESG) Investing

Matthew Gladdish

April 19, 2022

It pays to do the right thing

Environmental, Social and Governance (ESG) investing, or impact investing, is an increasingly popular way to put your money to work while making a positive impact on the world around you. More and more, investors are choosing to diversify their portfolios with clean, sustainable investments—and for good reason. It’s good business and good karma.

Non-financial factors as part of investment consideration

ESG investing has surged since the start of the pandemic. What exactly is it? In the simplest terms, the ESG strategy means investing in companies that score highly on environmental and societal responsibility scales. And while that can be in green markets like water resource management and electric vehicles, investors can also check the ESG box with minority owned businesses, companies with inclusion programs and hiring practices, or virtually any corporation whose goals include making a positive impact on the world around them.

The future of ESG and impact investing

Many institutional investors have embedded basic ESG considerations into their investment strategies. Originally this was simply through the exclusion of certain industry sectors to make portfolios “ESG compliant”. However, investors have gained significant conviction that the consideration of ESG factors is a means to create significant value for their portfolios. This shift is indicative of the many impact funds that have been launched in recent years as investors look to purchase companies that showcase measurable results towards specific ESG goals – such as sustainability.

Recent success story
Hyde Park Capital served as the exclusive investment banker to Hobbs & Towne (HTI), a leading executive search firm serving the clean energy, climate technology and sustainability categories. It has been acquired by True, a portfolio company of LLR Partners. Founded in 1997, HTI specializes in the “greening” of all industries with focuses on energy, mobility, food, agriculture, and water.

The bright future of ESG
ESG investing has been a hot trend of late, but is it here to stay? We believe so. Issues like solving the climate crisis aren’t going anywhere. Investing in companies who make our world a better place is a sound long-term strategy. Plus, social issues remain top of mind for millennials and Gen Z’s, who are the future of our global economy. For all these reasons and more, investors searching for environmentally responsible, financially sound investments are poised for future success.

Here at Hyde Park Capital, our team has the experience, knowledge and technology needed to capitalize on this lucrative, growing trend. Contact an HPC banker today and let us tell you more.

Client Testimonials

"Hyde Park’s team guided us through the process, providing us with a number of high quality counter-parties, and supported us through the transaction structuring, negotiation and due diligence. We are very pleased with the outcome and excited for the future of DTS.”
Allen Ibaugh, Co-Founder and CEO of Data Transfer Solutions
“We enjoyed working with Hyde Park Capital and appreciated their M&A expertise in the technology services sector and their help on this important transaction.”
Chris Toepke, CEO of Trifecta
“We very much appreciated the assistance of Hyde Park Capital on this strategic acquisition for ITE. Their M&A experience was quite helpful to our team and the overall process and assured the deal was well executed and we got it closed on schedule.”
Scott Dols, CEO of Industrial Truck & Equipment, LLC