In today’s rapidly evolving investment landscape, environmental risk management has become a critical factor for Private Equity firms seeking to safeguard their portfolios and drive sustainable growth. Recognizing this growing need, we are proud to announce our strategic expansion into the Private Equity environmental sector.
Building on Marsh McLennan’s 25 years of proven expertise in environmental risk advisory, we are now offering specialized consulting services designed to help Private Equity investors navigate complex environmental challenges and integrate robust Environmental, Social and Governance (ESG) programs into their investment strategies.
Why Environmental Risk Matters in Private Equity
Private Equity investments face unique environmental risks that differ significantly from other institutional investments. These risks often involve subtle, delayed impacts that can emerge long after a transaction closes, potentially triggering costly remediation, regulatory penalties or reputational damage. Environmental due diligence is sometimes overshadowed by financial analysis during deal evaluation, leading to late-stage discoveries of environmental liabilities that can disrupt transaction terms or even jeopardize deal completion.
Moreover, Private Equity firms operate within an increasingly stringent legal and regulatory framework that demands careful management of environmental exposures. Integrating environmental risk considerations into ESG programs is no longer optional but essential for meeting investor expectations, regulatory requirements and long-term value creation. We understand these complexities and help Private Equity firms:
- Identify environmental risks early in the investment lifecycle
- Quantify potential liabilities and exposures
- Manage risks proactively to avoid surprises
- Optimize investment outcomes through informed decision-making
Tailored Consulting Services for Private Equity
Our consulting services are uniquely tailored to meet the fast-paced and high-stakes nature of Private Equity transactions. Our team provides comprehensive environmental due diligence management that orchestrates real property assessments to identify legacy pollution and emerging contaminant risks. We quantify liabilities and develop risk models that inform transaction decisions and insurance coverage strategies.
Our approach goes beyond due diligence. We work closely with investment professionals to align environmental risk management with ESG metrics, guided by recognized standards such as SASB and GRI. This integration supports:
- Material factor screening processes during investment review
- Assessment of environmental risks specific to each transaction
- Development of actionable initiatives post-closing
Once an investment is made, we remain engaged with portfolio companies to support ongoing environmental performance. Our advisory services include:
- Environmental management system development
- Regulatory liaison and compliance support
- Claims support and loss mitigation
- Sustainability reporting and performance monitoring
This continuous engagement ensures that environmental risks are managed proactively throughout the investment lifecycle, enhancing portfolio resilience and value.
Proven Track Record and Deep Expertise
With a team of over 30 full-time professional advisors, including licensed geologists, engineers and certified experts in industrial hygiene and hazardous materials management, we bring unparalleled technical and regulatory knowledge to Private Equity clients. Our consultants average 20 years of experience and have delivered expert services in 35 countries and 40 U.S. states.
Our environmental risk advisory practice serves a diverse range of industries such as:
- Construction
- Manufacturing
- Energy
- Healthcare
- Real estate
This breadth of experience enables us to understand industry-specific challenges and tailor solutions that address the unique environmental exposures faced by Private Equity portfolio companies.
A Lifecycle Approach to Environmental Risk in Private Equity
Our engagement model is designed to support Private Equity firms at every stage of the investment lifecycle:
- Due diligence: Deliver Environmental Risk Summaries that provide clear insights into potential liabilities and ESG considerations
- Post-investment: Assist in baselining environmental risk management programs and identifying opportunities for improvement
- Ongoing support: Act as an extension of the portfolio company’s environmental team, offering risk assessment, performance monitoring and reporting
- Exit: Provide updated environmental screening to ensure a smooth transition and maximize value
Our ability to respond rapidly and deliver best-in-class consulting services is critical in the fast-moving Private Equity environment. We understand the tight timelines and high stakes involved and tailor our solutions to meet these demands without compromising quality or thoroughness.
Partner with Us for Sustainable Investment Success
As environmental risks continue to shape the Private Equity landscape, The Horton Group, a Marsh & McLennan Agency LLC Company, is committed to helping firms manage these challenges with confidence and clarity. Our expanded focus on Private Equity environmental consulting combines deep technical expertise, regulatory insight and practical risk management strategies to support sustainable investment decisions.
We invite Private Equity firms to:
- Enhance their ESG programs
- Mitigate environmental liabilities
- Create lasting value for investors and communities alike
Together, we can build a future where environmental stewardship and financial success go hand in hand. To learn more about our Private Equity environmental risk management services, visit our website or contact our team today.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
