CCRcorp Sites  

The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas.

Our Sites


A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.


An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.


The “one stop” resource for information about responsible executive compensation practices & disclosure.

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.


Keeping you in-the-know on environmental, social and governance developments

According to New Private Markets, some investors are less than enthusiastic about at least one innovation in sustainable investments:

“New York State Common Retirement Fund, one of the largest and most influential investors in sustainable private markets, is not a fan of funds where the GPs’ [General Partners’] carried interest is linked to impact performance.

‘… we are also keen on avoiding unintended consequences. And one of them is this notion of impact-linked carry and tying performance to achieving non-financial factors,’ said [Andrew Siwo, the pension systems’ director of sustainable investments and climate solutions], one of our 50 influencers in sustainable private markets. Some GPs – particularly those with a sustainability of impact focus – have tied a portion of their carried interest to the achievement of extra-financial goals, such as ESG or impact targets. This is designed to assure investors and target company management teams that the GP will not sacrifice its stated sustainability goals for the sake of additional financial return…

‘What this does is it opens the door for malperformance to be attributed to the desire to achieve non-financial objectives when impact is not tied to the thesis. And so those are products that we find unappealing,’ said Siwo. ‘We want to make sure we are isolating the GPs’ entire activities on that fiduciary duty.’”

Carried interest is a performance-based reward that serves as an incentive to maximize investment returns – the better an investment performs, the more money the manager makes. In this case, however, the pension is concerned about paying investment managers more when non-financial benchmarks are achieved or exceeded. That is a valid point – increasing direct costs without commensurate asset value growth does little more than burden those investments with higher management fees. While investment managers may think that is great, it probably is not the best strategy to attract and retain investors – private or otherwise.

If you aren’t already subscribed to our complimentary ESG blog, sign up here: for daily updates delivered right to you.

Back to all blogs

The Editor

Lawrence Heim has been practicing in the field of ESG management for almost 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one… View Profile