Despite political pushback against environmental, social, and governance (ESG) and diversity agendas, investor demand for private capital funds that pursue positive environmental or social impact has remained stable in recent years.

According to Preqin data, private equity, infrastructure, real estate, and private debt funds designed to achieve measurable environmental or social benefits while also generating financial returns raised a total of $31 billion in 2025, nearly matching the previous year's level.

Among these, impact-focused infrastructure funds, which are heavily concentrated in the renewable energy sector, performed particularly well in 2025, raising $24 billion. Brookfield Asset Management raised a $20 billion fund last year, which it claims is the largest ever dedicated to clean energy. Copenhagen Infrastructure Partners raised €12 billion, focusing on large-scale greenfield renewable energy projects.

These large fundraising efforts occurred against a backdrop of the U.S. government's policies opposing renewable energy, which have stalled numerous onshore development projects across the country and repeatedly attempted to halt offshore wind projects. Industry experts point out that while investor interest in funds broadly labeled as "impact" or "ESG" has declined, attention has increased for specific themes like renewable energy. Furthermore, investors have completely abandoned the notion of sacrificing returns for positive outcomes, making their financial return requirements more explicit.

So far this year, impact funds have raised $13 billion, which projects to a slight decline on an annualized basis. However, Preqin notes that year-end fundraising data typically rises due to reporting lags. The head of EQT's €3 billion impact private equity fund stated that sustainability remains a major trend, comparing it to "the new digitalization." Just as failing to consider a company's digital transformation a decade ago would now be seen as outdated, neglecting sustainability is similarly viewed as behind the times.