The ESG lifecycle of a fund
Read on
Macfarlanes is a market leader in the formation, marketing and operation of all types of funds.
When it comes to ESG advice for private funds, we provide a tailored and holistic approach.
Tax policy specialist
DD +44 020 7849 2290
bezhan.salehy@macfarlanes.com
Bezhan Salehy
Associate
DD +44 (0)20 7849 2363
emily.batchelor@macfarlanes.com
Emily Batchelor
Senior Associate
DD +44 (0)20 7791 4178
tiffany.cox@macfarlanes.com
Tiffany Cox
Partner
DD +44 (0)20 7849 2362
harriet.miller@macfarlanes.com
Harriet Miller
Partner
DD +44 (0)20 7849 2409
lora.froud@macfarlanes.com
Lora Froud
Head of ESG
DD +44 (0)20 7849 2480
rachel.richardson@macfarlanes.com
Rachel Richardson
Contacts
All content © 2025 Macfarlanes LLP. All rights reserved.
What makes us different?
A client recently had the following feedback on the Macs ESG team:
“They clearly have a very strong understanding of the ESG regulatory landscape (including SFDR) and, most importantly, how it applies to private funds. This meant they were able to provide practical and commercial advice whilst helping us to navigate a complex regulatory environment. The team truly acted as trusted advisors by providing a sounding board and helping us to critically assess our approach. On a personal note, it is always a pleasure to work with the team. They are in effect an extension of our ESG team and their input is highly valued.”
4
Our reach goes beyond legal advice. For example, our policy team has relationships with industry bodies, regulators and government. They horizon scan and help clients manage future risks and benefit from upcoming opportunities.
3
Having acted for some of the first private funds in the market we have grown and diversified alongside our clients. We continue to do this as the evolution continues towards ESG, sustainability and impact.
2
We are one of the few legal firms credibly advising private funds on the full lifecycle of a fund.
1
How do we work together?
Policy change and horizon scanning
Many consider ESG at fund formation stage in relation to fund strategies themselves and ESG considerations are often embedded into fund documents. A clearly articulated theory of change expressed in fund documents in the context of a sustainable impact strategy can provide clarity to investors and assist in SDR preparedness.
Greenwashing risk
Fund formation
SFDR and SDR positioning
Sustainable liquidity solutions
Capital deployment
Portfolio reporting
Responsible exit
Policy change and horizon scanning
Policy, law and regulation are moving faster than many can keep up with in relation to ESG. The policy team horizon scan issues for GPs and provide experience at the intersection of law, business and policy providing a map of emerging ESG risks and opportunities.
Fund formation
Many consider ESG at fund formation stage in relation to fund strategies themselves and ESG considerations are often embedded into fund documents. A clearly articulated theory of change expressed in fund documents in the context of a sustainable impact strategy can provide clarity to investors and assist if a label under the Sustainability Disclosure Requirements (SDR) is desired.
Impact linked carry and other tools can be utilised to provide formal economic incentives to deliver impact and ESG objectives.
The legal aspects of B Corp accreditation are worth considering at an early stage and our experts can guide you on the legal aspects.
SFDR and SDR positioning
The EU’s Sustainable Finance Disclosure Regulation (SFDR), accompanying disclosure requirements and taxonomy can be complex to navigate, however this is an area investors, regulators and other counterparties are paying close attention to. In particular, Principal Adverse Impact indicator reporting under SFDR has been an area of confusion which we have experience of navigating.
Along with the UK’s anti-greenwashing rules in the UK’s Sustainability Disclosure Requirements (SDR), the labels within SDR can be relevant for private fund managers. We help private fund managers navigate these.
Sustainable liquidity solutions
ESG debt is increasingly used as a method of aligning an ESG strategy or values across the value chain, including, investors, GPs, lenders and portfolio companies.
Capital deployment
Regardless of strategy, ESG considerations at the capital deployment stage is critical to managing ESG strategy and ESG risks within a fund.
Portfolio reporting
Reporting ESG related key performance indicators whether related to measuring impact, mandatory reporting requirements or specific investor requests can be complex with a range of methodologies and guidance available.
Greenwashing risk
A core priority for the FCA and other regulators is tackling greenwashing. Greenwashing occurs when firms make exaggerated misleading or unsubstantiated sustainability claims at product, fund or firm level. We can assist with tools to mitigate greenwashing risk.
Responsible exit
Having driven value creation by embedding ESG and reducing associated risks, a fund, post-exit can utilise contractual solutions and diligence to ensure that the investment continues to benefit from responsible stewardship. We can assist in developing the processes to ensure responsible exit strategy and ongoing stewardship.
2017
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2018
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Impact linked carry and other tools can be utilised to provide formal economic incentives to deliver impact and ESG objectives.
The legal aspects of B Corp accreditation are worth considering at an early stage and our experts can guide you on the legal aspects.
Start a new fund
Many consider ESG at fund formation stage in relation to fund strategies themselves and ESG considerations are often embedded into fund documents. A clearly articulated theory of change expressed in fund documents in the context of a sustainable impact strategy can provide clarity to investors and assist in SDR preparedness.
Impact linked carry and other tools can be utilised to provide formal economic incentives to deliver impact and ESG objectives.
The legal aspects of B Corp accreditation are worth considering at an early stage and our experts can guide you on the legal aspects.
Impact linked carry and other tools can be utilised to provide formal economic incentives to deliver impact and ESG objectives.
The legal aspects of B Corp accreditation are worth considering at an early stage and our experts can guide you on the legal aspects.
Key numbers
519
Other fee earning staff
903
Total staff
98
Partners
17
Cross-practice real estate partners
55
Cross-practice real estate lawyers
Key numbers
519
Other fee earning staff
903
Total staff
98
Partners
17
Cross-practice real estate partners
55
Cross-practice real estate lawyers
Key numbers
519
Other fee earning staff
903
Total staff
98
Partners
17
Cross-practice real estate partners
55
Cross-practice real estate lawyers
519
Other fee earning staff
17
Cross-practice real estate partners
55
Cross-practice real estate lawyers
Many consider ESG at fund formation stage in relation to fund strategies themselves and ESG considerations are often embedded into fund documents.
A clearly articulated theory of change expressed in fund documents in the context of a sustainable impact strategy can provide clarity to investors and assist if an SDR label is desired.
Impact linked carry and other tools can be utilised to provide formal economic incentives to deliver impact and ESG objectives.
The legal aspects of B Corp accreditation are worth considering at an early stage and our experts can guide you on the legal aspects.
ESG lifecycle of
a fund
Start a new fund
Click on the '+' icon to learn more about each stage.
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Having acted for some of the first private funds in the market we have grown and diversified alongside our clients. We continue to do this as the evolution continues towards ESG, sustainability and impact.
1
Our reach goes beyond legal advice. For example, our policy team has relationships with industry bodies, regulators and government. They horizon scan and help clients manage future risks and benefit from upcoming opportunities.
1
A client recently had the following feedback on the Macs ESG team “They clearly have a very strong understanding of the ESG regulatory landscape (including SFDR) and, most importantly, how it applies to private funds. This meant they were able to provide practical and commercial advice whilst helping us to navigate a complex regulatory environment. The team truly acted as trusted advisors by providing a sounding board and helping us to critically assess our approach. On a personal note, it is always a pleasure to work with the team. They are in effect an extension of our ESG team and their input is highly valued.”
1
All content © 2024 Macfarlanes LLP. All rights reserved.
Last year our work involved over 75 jurisdictions.
Privacy policy
|
Legal and regulatory
All content © 2025 Macfarlanes LLP. All rights reserved.
Last year our work involved over 75 jurisdictions.
Privacy policy
|
Legal and regulatory
Partner
DD +44 (0)20 7849 2023
michael.sholem@macfarlanes.com
Michael Sholem
Partner
DD +44 (0)20 7849 2362
harriet.miller@macfarlanes.com
Harriet Miller
