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George Soros backing fund that will invest in ESG-related litigation (2022)
| Environmental, social, and corporate governance |
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A report from Funds Europe indicates that the Soros Economic Development Fund is investing in a fund that “aims to maximise proceeds for claimants and provide a return for investors and generate resources for more [ESG-related] litigation.”[1]
| “ | Aristata Capital, whose investment clients include the Soros Economic Development Fund (SEDF), aims to show that litigation finance in ESG-related cases can be a profitable investment. In July, the firm had the first close for its Aristata Impact Litigation Fund I, which focuses on social impact litigation. CEO Rob Ryan, previously a director at the ClientEarth environmental charity, says Aristata has an “impact-first mentality”.
Experience taught him that corporations were much less likely than governments to change their behaviour on climate issues in response to litigation. The not-for-profit sector has not proved itself as an effective player in commercial litigation, he says. “Traditional philanthropic approaches are not enough. Private capital is needed to solve public problems.” The fund aims to maximise proceeds for claimants and provide a return for investors and generate resources for more litigation. Ryan says the vehicle will work in a similar way to a closed-end private equity fund. The first fundraising, for which law firm Reed Smith acted as adviser, reached an initial close at £40 million (€46 million) at the start of July. The firm aims to increase that to at least £50 million with a hard cap of £100 million. The final close is planned for June 2023, with the fund targeting an internal rate of return of 20%.... The SEDF, part of the Open Society Foundations (OSF) set up by George Soros in 1997, is also backing the fund.[2] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Funds Europe, "ESG: Soros-backed Aristata fund aims to turn ESG litigation into profitable investment," accessed October 31, 2022
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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