October 31, 2013
By: Andrew Malk and Jennifer Pennell
Oak Hill recently released its first ESG report, which is particularly notable given that it was the first ESG report published publicly by a U.S.-based middle market private equity firm.
The report details Oak Hill’s environmental, social, and governance initiatives, emphasizing ESG integration across the investment cycle. Notable best practices described in the report include:
- forming a committee dedicated to supervising efforts to achieve the firm’s ESG goals;
- releasing an annual update of the report to keep stakeholders informed of initiatives and progress; and
- systematizing ESG due diligence.
As MP documented in its survey, ESG in Private EquitySM, many middle market firms are now seeking to use ESG management initiatives to augment their traditional value protection and creation strategies. While ESG management in private equity initially seemed to be the domain of the biggest buyout firms, Oak Hill’s ESG report is strong evidence that middle market firms are now closely following these larger early adopters.