As we wrap up our special series on the 2022 private credit outlook, we turn our attention to #ESG. As our Chart of the Week highlights ESG is a fundamental concern of investors. How impactful it will be on manager behavior will depend on regulation and client demand.   

ESG in some form has been around for centuries. From Mosaic law dating back to 1500 BC, to Henry VIII’s legalization of lending, to 18th century England and the Methodist movement, right up to the 20th century’s “socially responsible investing,” practices were rooted in screening out business activities misaligned with stakeholder values.   

Today climate change, diversity, equity and inclusion, and corporate integrity, are the lens through which investors are assessing managers’ ability to deal with associated risks and opportunities for every investment...