Bridging the Divide: Private Markets and New Drivers of Value Creation

The report argues that private market investors are uniquely positioned to accelerate the energy transition by applying commercial excellence levers—such as pricing optimization, GTM strategies, and M&A—to decarbonization goals. It highlights a growing appetite among Limited Partners (LPs) for energy transition funds and provides case studies of General Partners (GPs) who integrate sustainability into their value creation plans to achieve higher exit multiples.

• There is an accelerating trend of Limited Partners (LPs) increasing commitments to energy transition and climate solutions, with several major pension funds like CalPERS, the New York State Common Retirement Fund, and APG announcing significant new or increased allocations.
• Private market investors can drive value by capturing 'sustainability premiums' through better customer segmentation, pricing optimization, and the launch of sustainable products, meeting a growing B2B demand where nearly 50% of corporate buyers are willing to pay a premium of 5% or more for sustainability.
• General Partners (GPs) are increasingly using 'brown-to-green' strategies, targeting energy-intensive assets in hard-to-abate sectors to achieve significant emissions reductions and higher exit multiples by transforming business models.
• The private equity governance model—characterized by majority control, aligned executive incentives, and long-term horizons—allows for more aggressive and patient business transformations compared to public equity markets.
• Sustainability is becoming a critical factor in talent acquisition and retention, particularly for Gen Z and millennials; 72% of Gen Zs and 71% of millennials state that environmental credentials are important when considering an employer.
• Infrastructure investors are leveraging their relationships with large corporate offtakers to scale clean energy; for example, Brookfield partnered with Microsoft to deliver over 10.5 gigawatts of renewable energy capacity by 2030.
• GPs are integrating sustainability into the exit process by developing 'sustainability equity stories' 12–18 months before an exit to attract a wider pool of buyers, including specialized impact and energy transition funds.
• A significant gap exists in the market for energy transition companies that fall between the size and risk-return profiles of venture capital and infrastructure finance, creating an opportunity for growth equity and buyout funds to provide scale-up capital.

APA

World Economic Forum (2024). Bridging the Divide: Private Markets and New Drivers of Value Creation. https://www3.weforum.org/docs/WEF_Bridging_the_Divide_2024.pdf

Chicago

World Economic Forum. Bridging the Divide: Private Markets and New Drivers of Value Creation. 2024. https://www3.weforum.org/docs/WEF_Bridging_the_Divide_2024.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Bridging the Divide: Private Markets and New Drivers of Value Creation |date=November 2024 |url=https://www3.weforum.org/docs/WEF_Bridging_the_Divide_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2024bridging, author = {{World Economic Forum}}, title = {{Bridging the Divide: Private Markets and New Drivers of Value Creation}}, institution = {World Economic Forum}, year = {2024}, month = nov, url = {https://www3.weforum.org/docs/WEF_Bridging_the_Divide_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }