NEW YORK–(COMMERCIAL THREAD) – Today, Novata was launched as a new public benefit company and innovative technology platform designed to provide the ecosystem of private markets, including private equity firms, with a measure, a Intuitive and efficient data collection and benchmarking of environment, social good and corporate governance (ESG). . Backed by a one-of-a-kind consortium, which includes the Ford Foundation, S&P Global (NYSE: SPGI), Hamilton Lane (NASDAQ: HLNE) and Omidyar Network, Novata has created an independent, impartial and flexible open architecture platform for private markets to more consistently report relevant ESG data. Directly informed by the needs of general partners and backers, Novata is designed to offer a controlled ESG reporting framework built around 10 critical metrics that consistently appear in major ESG methodologies and a secure technology platform that provides a clearer view of the ESG impact.
“The majority of the world’s economic activity is carried out by private companies. It is their approach to environmental and social impact that will ultimately accelerate the ideals of inclusive capitalism, ”said Alex Friedman, CEO of Novata. “Our solution is unprecedented as it is the first time that a group of not-for-profit and for-profit leaders in social justice, financial data and private markets have joined forces to resolve ESG fragmentation. that hit the public markets. ”
Lorraine Spradley Wilson, Chief Impact Officer and Head of Methodology at Novata, added: “With a simple and efficient methodology, a secure, technology-based data repository and unbiased benchmarking tools, private companies will be able to better meet and anticipate the evolution of investors and society’s priorities. ”
Novata’s solution consists of three main elements:
A streamlined ESG reporting framework which consolidates the measures that appear systematically in the main methodologies and can be immediately exploited by any private company.
Security contributory database where private companies can report against the Novata framework, as well as other widely used methodologies, and where owners and general partners control access to company data.
- Objective and data-driven benchmarking against peers of private and public companies, in addition to reporting tools to help private companies gather key insights from their data and easily report to investors, regulators and other stakeholders.
Interest in ESG has increased in private markets, as evidenced by private equity firms increasingly focusing on effectively quantifying societal impact for investors. Yet measuring ESG remains difficult for private markets, most of which are still in the early stages of quantifying sustainability and social impact. Novata is pioneering a mission-driven technology platform that will help private market stakeholders – from private companies to lenders, suppliers, and investors – avoid the fragmentation that has made measuring money efficient and objective. ‘particularly difficult impact on public markets, while offering flexibility to meet business leaders and general partners on their individual ESG journeys.
The following consortium members and founding partners serve as key advisors to Novata, helping to ensure that the solution continues to evolve as the private market sector matures and expands.
“At the Ford Foundation, we are committed to supporting initiatives that enable significant progress towards a more inclusive form of capitalism,” said Darren Walker, President of the Ford Foundation. “Novata’s solutions give investors the ability to better allocate capital with more effective consideration of purpose, inclusiveness and sustainability. Their tools will be an essential part of creating an economy that works for everyone. ”
“The global economic transition to net zero will be achieved through a truly collaborative approach and aligned with public and private markets,” said Doug Peterson, CEO of S&P Global. “S&P Global is proud to invest in much needed innovation in ESG transparency and benchmarking in private markets through the creation of Novata. S&P Global powers the markets of the future, and private markets is an area where we can help add transparency and evidence to support their workflows. This investment represents a step forward in working with the private equity industry with a specially designed solution that supports ESG disclosure for private markets. ”
“In all private markets, ESG is a complex issue that requires nuance to be resolved. It’s not a one-size-fits-all solution, ”said Erik Hirsch, vice president and head of strategic initiatives at Hamilton Lane. “Novata is a neutral solution that allows private companies, including general partners, to collect and measure their data according to the metrics most meaningful to them and their investors. At Hamilton Lane, we believe that the best data and technology solutions will continue to drive private markets forward, and we are excited to launch Novata alongside such an esteemed management team.
“Private companies and their investors represent a growing part of our economy and have a vital role to play in contributing to a more inclusive and sustainable capitalism. We believe Novata provides a solution that will enable private companies, general partners and sponsors to better manage their impact on people and the planet, ”said Mike Kubzansky, CEO of Omidyar Network.
Beta customers will have access to the Novata technology platform before the end of the year. Wider access is expected to be available in early 2022.
A range of leading private equity firms advise the Novata Consortium, including Bridgepoint, Clearlake Capital Group, Kohlberg & Co., KPS Capital Partners, Lindsay Goldberg, Summa Equity, Thomas H. Lee Partners and The Visria Group. In addition, several of the advisors to Novata’s general partners – The Visria Group, Clearlake Capital Group and Kohlberg & Co.
“We saw first-hand the critical need for a more integrated approach to ESG measurement, as well as the challenges that arise without the right framework and tools tailored to meet the unique needs of private equity sponsors,” said declared José E. Feliciano. , co-founder and managing partner of Clearlake Capital Group and Clearlake Impact Initiative. “We are committed to the principles of responsible investment and believe that private markets have a responsibility to better manage and monitor ESG performance not only to generate strong returns on investment, but also to have a positive impact on society and its environment. to come up. ”
Novata has also worked with a range of limited partners to design their solutions, as ESG is an increasingly important focus for them.
“Private equity assets represent a rapidly growing share of markets and the global economy, having grown by more than 150% in the past decade alone,” said Scott M. Stringer, City Comptroller. New York. “And private equity investors need reliable access to accurate, tangible and relevant ESG data, climate change and diversity, worker transitions and corporate responsibility, all of which are essentials. a truly inclusive capitalism that creates long-term value for our pension recipients. . ”
To learn more about Novata, visit the website, where private companies and general partners can indicate their interest in becoming Novata’s first customers, and watch the launch video here. Follow Novata on LinkedIn to stay up to date with the latest company news and opinions.
Novata is a public benefit company created to help private equity firms and private companies navigate the ESG landscape by providing relevant reporting metrics, a contributory database to store information, and analytical tools. and reporting to key stakeholders, including sponsors and regulators. Founded to enable private markets to achieve a more sustainable and inclusive form of capitalism, Novata’s goal is to help private markets avoid fragmentation of ESG standards. Novata was formed in partnership with the Ford Foundation, S&P Global, Hamilton Lane and Omidyar Network – with additional funding provided by its co-founders and independent chairman – and is majority controlled by mission-oriented organizations and its employees. For more information, please visit https://www.novata.com/.
About the Ford Foundation
The Ford Foundation is an independent, not-for-profit granting body. For more than 85 years, she has worked with courageous people on the front lines of social change around the world, guided by her mission to strengthen democratic values, reduce poverty and injustice, promote international cooperation and advance human achievements. With its headquarters in New York, the foundation has offices in Latin America, Africa, the Middle East and Asia.
About S&P Global
S&P Global (NYSE: SPGI) is the world’s leading provider of credit ratings, benchmarks and analysis in global capital and commodities markets, providing ESG solutions, in-depth data and insight into critical business factors. For more than 160 years, we’ve provided critical intelligence that unlocks opportunity, drives growth and accelerates progress. Our divisions include S&P Global Ratings, S&P Global Market Intelligence, S&P Dow Jones Indices and S&P Global Platts. For more information, visit www.spglobal.com.
About Hamilton Lane
Hamilton Lane (NASDAQ: HLNE) is a leading private markets investment management firm providing innovative solutions to sophisticated investors around the world. Dedicated exclusively to private market investments for 30 years, the company currently employs approximately 475 professionals working in offices in North America, Europe, Asia-Pacific and the Middle East. Hamilton Lane has $ 757 billion in assets under management and supervision, including $ 92 billion in discretionary assets and $ 665 billion in advisory assets, as of June 30, 2021. Hamilton Lane specializes in the creation of investment programs. ‘flexible investing that gives clients access to the full range of private market strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on LinkedIn: https://www.linkedin.com/company/hamilton-lane/.
About the Omidyar network
Created by philanthropists Pam and Pierre Omidyar, Omidyar Network is a social change company that has committed over $ 1 billion to innovative for-profit businesses and non-profit organizations since 2004. Omidyar Network strives to reinventing critical systems and the ideas that govern them, and building more inclusive and equitable societies in which people have the social, economic and democratic power to thrive.