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illuminem summarizes for you the essential news of the day. Read the full piece on FORTUNE or enjoy below:
🗞️ Driving the news: Public markets' focus on short-term returns makes them unsuitable for funding energy transition companies, according to Emmanuel Lagarrigue, co-head of climate at KKR & Co.
• He advocates for patient investors to support these companies instead
🔭 The context: Lagarrigue notes that public markets' volatility hinders long-term strategies crucial for large-scale corporate transformations
• Private equity and debt portfolios are becoming key players in climate finance as public interest wanes amid economic challenges
🌍 Why it matters for the planet: Long-term investments are essential for the development and scaling of green technologies needed to combat climate change
• Lagarrigue's insights underscore the importance of aligning investment strategies with sustainable goals
⏭️ What's next: Private markets are expected to continue growing their influence in climate finance, with significant investments in renewable energy and green technologies
• This shift could fill the funding gap left by public markets
💬 One quote: "There’s that transition moment for companies that public markets are not equipped or designed to undertake," said Emmanuel Lagarrigue
📈 One stat: Between 2016 and 2023, private fund allocations to renewables consistently outperformed those in oil and gas, according to MSCI Inc
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