Apex partners with data science firm to bring ESG risk data to private markets

Fund administrator continues to bolster its ESG capabilities, this time to expand access to material risk data for private markets participants.

By Jonathan Watkins

Apex Group has partnered with data science firm Rep Risk to incorporate its technology to identify environmental, social and governance (ESG) risks for private markets participants.

RepRisk provides qualitative research, quantitative risk analytics, and proprietary metrics for more than 150,000 public and private companies, from every sector and market across the globe.

Through the partnership Apex is seeking to close the gap for a previously underserved market of private companies by delivering a global, independent ESG tool based on data insights.

RepRisk’s ESG risk dataset will combine with Apex’s company disclosure-based ESG ratings to offer a 360-degree view of private company holdings.

Apex will manage the independent collection of data for investors from their underlying portfolio investments to deliver real-time ESG analysis through a secure, intuitive, and flexible online platform. The group’s ESG Rating and Advisory Portal now includes RepRisk Analytics Reports and Cases Data on private companies, allowing ESG insights to private companies and their investors.

“Apex ESG’s new platform was established to satisfy the demand from private markets for greater transparency through a high quality, global, independent, single-source ESG solution,” said Andy Pitts-Tucker, managing director, Apex ESG Ratings and Advisory.

“We help investors to collect, verify and evaluate data on their portfolio companies and benchmark the quality and performance of that data to produce quantitative and comparable analysis. With access to RepRisk’s independent ESG data and insights, we are excited to provide a holistic perspective on each company. Ultimately, this partnership can play a role in influencing significant behavioural change, drive capital flows, and support our clients as they look to improve their ESG performance.”

The partnership is the latest in a string of moves by Apex to further its ESG offering for clients. In August, the group launched a new ratings and scoring platform for the private markets, designed to deliver new insights into private companies and their investors.

Meanwhile, back in 2019 Apex partnered with ISS to develop an environmental, social and governance (ESG) reporting service for investment managers.

Just last week, NVL Asset Management also selected Apex Group to provide fund administration services to a new fund investing in sustainably managed forests and agricultural land in the Baltic Sea region and Central and Eastern Europe.

Earlier this month, JP Morgan partnered with RepRisk to use its ESG risk metrics within its DataQuery platform, providing clients across its trading and securities services businesses with access its ESG risk data.