The demand for impact funds and sustainable investments is expected to grow along with the pipeline of investment opportunities. The sustainable economic transition will require a complete overhaul of the European asset base, from assets infrastructure to the technologies we use day to day. Asset managers are now required to disclose sustainability risks as well as any potential negative impact on sustainability factors. This has increased the pressure to create investment products that have a sustainable investment strategy. Forward-looking asset managers will see this as an opportunity to create new products and services.
While blended funds require cleantech market knowledge, they provide opportunities to participate in growth sectors and IPOs that will make up the DAX, Euronext 100, or FTSE 100 in the decarbonized new reality economy, and offer an opportunity to market them as impact products. This requires an unprecedented amount of venture capital, private equity, and skilled fund managers in cleantech sectors.
So far there are no privately managed funds-of-funds specializing in this area, investing in cleantech venture capital funds at scale. Asset managers in Europe who position themselves early and build their finance blending capacities have an opportunity to participate in a growing market and become a sought-after partner for private and public investors who are interested in financing the new reality transition.
Investors are pivoting their investment strategies in light of the pandemic as we transition into the new reality. If you are interested in learning about its impact on deals and venture-backed funding during the first quarter of 2020, read our Q1 2020 Venture Pulse Report. The Q2 2020 Venture Pulse report will be released in July.
We at KPMG Private Enterprise understand the implications of COVID-19 for private companies, including new emerging growth companies and scale-ups. I encourage you to follow our regular KPMG Private Enterprise series of blog posts as we share insights from across our global network on the impact that COVID-19 may have on your business strategy and operations, and how to embrace the new reality of a post COVID-19 world.