ESG & Investing
The Hedge Fund Veterans Delivering Capital Relief to Banks, With an ESG Twist
- Market sees rise in demand for ESG add-on to risk transfers
- Pension funds are among major buyers of such instruments
As banks increasingly seek to transfer their credit risk to less regulated investors, buyers on the other side of those deals are starting to request an additional feature: sustainability.
Newmarket Capital, a Philadelphia-based alternative asset manager founded by hedge fund veteran Andrew Hohns, has seen a substantial increase in the number of investors in synthetic risk transfers who now want their SRTs to have some form of environmental or social impact.