A Note from Jeff Diehl, Managing Partner
Investing responsibly continues to be an important priority for our firm and many of our limited partners (LPs), who see the integration of environmental, social and governance (ESG) considerations in investment decision making as a means for better risk mitigation and long-term value creation.
Sustainability-linked value creation is also important for many of the general partners (GPs) with whom we invest. These GPs, who raise capital globally, invest in portfolio companies that serve sustainability-conscious customers across international markets, or within legal or regulatory contexts that make improved sustainability performance an important value creation lever.
These GPs recognize that their portfolio companies can create sustainable value in several ways. They can strengthen and grow their business lines by focusing on key market segments for whom ESG factors influence purchasing decisions. They can maintain their license to operate and expand by mitigating legal and reputational risks. They can also achieve cost savings through operational efficiency improvements, more resilient supply chains, and reduced employee turnover. For some, there may also be an opportunity to explore new markets by introducing more sustainable products—or to improve the sustainability profile of existing products to capture premium pricing.
That said, the geopolitical and shifting regulatory context, particularly in the US, has created ongoing headwinds and uncertainty in this area, which is reflected in current investor sentiment. In our 2025 Adams Street Global Investor Survey, 31% of LPs ranked ESG investing among the most attractive anticipated investment opportunities, down from 46% in the prior year survey, and closer to 2021 and 2022 levels.1
Despite this backdrop, our recent ESG survey of active managers, described later in this report in more detail, shows underlying managers largely staying the course. Partly, this is due to the previously mentioned benefits of applying a sustainability lens to their value creation plans; partly, it is in recognition of the continued focus from many LPs on their ESG practices. Both parties seem to believe that, as managers progress along the maturity curve in their approach to creating sustainable value, this should lead to more resilient, efficient and faster-growing businesses and potentially better financial outcomes for all parties involved, while addressing the need for more sustainable growth at a global scale.
– Jeff Diehl, Managing Partner & Head of Investments, Adams Street Partners
Firm Overview
Adams Street by the Numbers
Adams Street has focused exclusively on private markets investment management since the firm’s founding in 1972. Adams Street manages assets for institutional investors, including corporate and public pensions, foundations, family offices, and endowments. Our deep industry experience and global insights provide clients with customized access to the spectrum of private markets strategies. Adams Street has 15 offices located in Abu Dhabi, Austin, Beijing, Boston, Chicago, Hong Kong, London, Menlo Park, Munich, New York, Seoul, Singapore, Sydney, Tokyo, and Toronto.
Adams Street at a Glance
Adams Street has been recognized as one of the most respected and experienced private markets investment managers in the industry.
Responsible Investing Priorities and Progress
Adams Street has made considerable progress in ESG integration in recent years. We continue working to enhance policies and processes and strive to optimize our commitment to investing responsibly and to ensure ESG factors are assessed at every stage of the investment process.
Private Equity Wire and Real Deals ESG Awards6
ESG & Our Investment Process
Our Integration of ESG Considerations into the Investment Process
Adams Street is committed to investing responsibly and our firm has long considered ESG considerations as integral to our investment decision-making process.9 Adams Street’s investment diligence considers factors including a fund’s or portfolio company’s governance practices, the quality, sustainability and transparency of its operations, and the geographic scope, industry-specific attributes, and other impacts of its business.
Key Focus Areas of Adams Street’s Firmwide ESG Program
Adams Street ESG Program Development9,10
GREATER TRANSPARENCY
Provide data-driven insights on our ESG practices and the ESG attributes of our investment portfolio
ENGAGE WITH GPs
Encourage greater transparency on ESG integration within their investment decision making and responsible ownership practices
MANAGE REPUTATIONAL RISK
Conduct systematic pre-investment screening of new investment opportunities and post-investment monitoring of our GPs and underlying portfolio companies for any severe ESG incidents11
SEEK TO MINIMIZE POTENTIALLY ADVERSE IMPACTS
Evaluate material ESG risks as part of our investment decision-making process and interactions with GPs and portfolio companies
DEVELOP IMPACT INVESTMENT STRATEGIES
Where appropriate, we design and implement strategies with the aim of delivering positive outcomes for society and the environment, alongside financial returns in line with the ESG and impact objectives of our clients
INDUSTRY-WIDE ESG INITIATIVES12
Work collaboratively with industry peers towards improving ESG standards in private markets
Supporting Industry Organizations Promoting ESG-Related Initiatives12
ESG Risk Analysis is Integral to the Investment Lifecycle13
Adams Street has been a signatory to the Principles for Responsible Investment (PRI) since 2010. Our approach begins by pre-screening potential investment opportunities and partners, and post-investment monitoring and reporting continues throughout the holding period.
Adams Street ESG Framework
ESG Oversight & Accountability
Firmwide Collaboration on Investing Responsibly
Responsibility for implementing Adams Street’s ESG Policy commitments is shared widely across the firm, with cross-functional oversight for our firmwide ESG initiatives and investment team-level accountability for integration of material ESG factors. Our ESG Committee:
- Incorporates active Executive Committee level oversight and involvement
- Meets quarterly and as needed
- Provides input on ESG-related policy and practices
- Participates in developing forward initiatives
- Has deep collective experience in considering material ESG factors across investment strategies, sectors and geographies
- Investment team representatives enhance ESG integration
Firmwide ESG Integration
Cross-Functional ESG Committee Provides Firmwide Oversight
Adams Street’s dedicated ESG Committee meets quarterly and oversees ESG integration. The committee includes representatives from each investment team and each of the key geographies in which we invest.
ESG In Practice
Inside Trinity College’s Sustainability Strategy15
Adams Street’s Director of ESG and Responsible Investing, Yohan Hill, met with Romane Thomas, Investment Manager at Trinity College, Cambridge, to discuss their approach to responsible investing and sustainability as LPs, as well as her thoughts about responsible investing in private markets more broadly.
Romane Thomas is an Investment Manager at Trinity College, Cambridge, where she oversees over half of the College’s £2.5 billion endowment. She leads the equities portfolio, spanning public equities, venture capital, and private equity. Prior to joining Trinity, Romane worked at McKinsey & Company, advising clients on strategic and investment-related matters.
She holds degrees from Columbia University and the London School of Economics, and is a CFA charterholder. Romane also serves on the Investment Committee of the Robertson Trust and is a Governor at the Stephen Perse Foundation.
Key Takeaways16
- Trinity has long prioritized sustainability, and in 2021 solidified this in its investment policy by committing to having a significant, lasting and positive impact on the environment, including a net-zero goal by 2050
- Like many LPs, Trinity views sustainability as integral to its investment approach, due to its long-term investment horizon and exposure to systemic risks, as well as broader stakeholder interest in addressing environmental and social issues
- Within the endowment, this focus on sustainability is supported by a broader ESG policy and a three-pillar sustainability strategy that includes mitigation, positive investment, and engagement
- Trinity’s message to GPs is that sustainable, long-term financial returns with positive real-world impact will ultimately define their evaluation of GP performance going forward
LP Perspectives
Insights From Our 2025 Global Investor Survey16
Insights From Our Annual General Partner ESG Survey17
Adams Street seeks to engage with GPs with whom we have the greatest influence to drive improvement in their ESG approach via our annual ESG survey process. Each year, we survey 200+ active managers to evaluate their overall approach to ESG-related topics.
The results are used for in-house ESG ratings and client reporting. Results are also shared with participating managers at the end of the process, and each manager is offered an opportunity to participate in a debrief call to learn how they might improve their level of performance in the survey.
Over recent years, we have seen high levels of participation in our annual ESG survey for active GPs (87% in 2022, 92% in 2023, 95% in 2024) and continued improvement in key indicators of ESG good practice across the Adams Street platform.
The charts that follow provide an overview of the level of institutionalization of ESG practices across all geographies and sub-classes of managers with which we invest.
Highlighted Findings From Adams Street’s Annual General Partner ESG Survey
GP Engagement
Latest ESG Survey Results17
Diversity & Inclusion
Investing with Diverse Managers
We embrace different perspectives and cultures to generate great ideas, which we believe brings value to our clients, our investments, and our communities.
- Our approach to diversity and inclusion includes increasing access, contributing to education and engaging staff in outreach opportunities designed to raise awareness and bring greater numbers of women and people of diverse backgrounds into the finance industry
- Adams Street defines “Diverse Managers” as investment managers with at least one person who represents ethnic and/or gender diversity at the Partner level who receives meaningful carried interest and/or ownership in the management company
- Adams Street has long held a sustained interest in sourcing and investing with best-in-class Diverse Managers
Advancing Diversity & Inclusion Initiatives with Partner Organizations19
Looking Ahead
Perspectives From Yohan Hill, Director of ESG and Responsible Investing
Adams Street’s approach to investing responsibly implicitly recognizes that the benefits of integrating ESG considerations in the investment process include both risk mitigation and sustainability-linked value creation. In view of the current geopolitical and regulatory context and ongoing ESG-related headwinds, the latter benefit is more in focus now in our discussions with mangers than ever before.
Leading managers, and their advisers, are becoming increasingly sophisticated at both assessing the potential value creation levers derived from their commercial and ESG due diligence of new investments and embedding this as part of their overall value creation plans post-investment, through to exit.
ESG factors will not necessarily be among the top value creation levers for every new investment opportunity for our managers, but the ability of GPs as fiduciaries to judge what ESG factors matter most to their individual portfolio companies should be premised on a clearly articulated approach to evaluating and executing on sustainable value creation opportunities, encompassing the full arc of the investment lifecycle.
Demonstrating the value of integrating ESG considerations in the investment process through real-life examples of both success stories and challenges is now critical to understanding the benefits of responsible investing, and having a robust approach for doing so is key.
Our annual survey of ESG practices among active managers suggests that our managers are increasingly developing their approach to responsible investing, which is encouraging to see. As this trend continues, we believe that newly realized opportunities to unlock long-term, sustainable value in underlying investment portfolios, where this would have been previously untapped, will ultimately speak for themselves, to the benefit of LPs and GPs alike.
– Yohan Hill, Principal & Director of ESG and Responsible Investing Investment Strategy and Risk Management
TCFD Supplement: Updating Our Climate Scenarios
Updating Our Climate Scenarios
Adams Street published its inaugural TCFD Report in January 2025, which set out our approach to assessing exposure to climate-related risks in our investments. Our assessment utilized the Earnings Value Transition Risk (EVTR) dataset developed by Risilience to enable us to quantify our exposure to climate-related transition risks across different time horizons under specific climate scenarios.
Since then, Risilience has further updated its methodology, replacing the previously used scenarios with more recent scenarios developed by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). This latest set of NGFS scenarios (Phase V long-term scenarios) was published in November 2024 and provides a richer narrative around potential emission pathways, with a diverse range of higher and lower risk outcomes.
NGFS Scenarios: Key Narratives22
Overview of NGFS Scenarios and Dimensions of Transition Risk
Launched in 2017, the NGFS is an international group of central banks and financial supervisors working to enhance the financial system’s role in managing climate-related risks. The NGFS has partnered with climate scientists and economists to design a set of hypothetical long-term scenarios to provide a common and up-to-date reference point for understanding climate-related financial risk and opportunities. Risilience’s transition risk models are underpinned by NGFS scenarios, with assumptions about policy change, energy outlooks, technology innovation, and implied global temperature rise. The latest iteration of NGFS scenarios (Phase V) explores a set of seven possible transition pathways, depending on different levels of ambition and coordination in terms of climate policies as outlined below.
Evaluating Exposure to Climate-Related Transition Risks Using Updated NGFS Scenarios
To refresh our prior TCFD analysis on our investments using these updated scenarios, Adams Street analyzed an aggregate of three recent vintages of broad-based Adams Street portfolios (with vintage years of 2020, 2021 and 2022), to identify potential exposure to future earnings risk in underlying investments.
Adams Street used the Risilience EVTR dataset to model the earnings value at risk over a five-year and 10-year holding period under each of the seven NGFS climate scenarios, providing us with an aggregate view of each of the six underlying dimensions of transition risk in Risilience’s EVTR models: policy, market consumer, technology, litigation, reputation and market investor risk.
Underlying investments were then assigned an EVTR category of low, medium-low, medium-high and high based on the percentage earnings value at risk ascribed to their business (based on industry, revenue band and geography) under the different scenarios and timeframes.
Below is an overview of our updated analysis arranged in order of likelihood (from more likely to less likely) based on expert-driven probabilities provided by Risilience for the new NGFS
emissions pathways.
Looking more closely at the the Delayed Transition emissions pathway, which falls within the disorderly transition scenario category, we see that an estimated 8% of the aggregate portfolio’s underlying NAV is exposed to high transition risk industries in the 10-year timeframe, mainly driven by market risk linked to shifting consumer and customer preferences. We consider this scenario to be useful for stress-testing the portfolio as it aligns with the broad aims of the Paris Agreement to keep average global temperature rise below 2oC, with an implied 2100 global temperature rise of 1.7oC, while assuming current policies continue until 2030 followed by drastic action (albeit in a disorderly manner) to achieve a delayed transition.
The updated models and analysis suggest that this broad-based portfolio26 of private markets investments is likely to be resilient to climate-related transition risk over the next 10 years, based on its relatively modest exposure to high transition risk industries and geographies in a “Delayed Transition” scenario, i.e., where global greenhouse gas emissions only decline post-2030 and climate policies are divergent across countries and sectors.27 Further information on Adams Street’s approach to climate-related governance, risk management and metrics and targets can be found in our full TCFD Report.
Disclosures / Important Notes
1. 2025 Adams Street Global Investor Survey
2. Firmwide AUM as of June 30, 2025; does not include the more recent private credit closings or private credit leverage which may be discussed herein or is available upon request.
3. As of June 30, 2025.
4. Mandates refer to separately managed accounts and commingled strategies, including investment vehicles for which Adams Street Partners does not directly advise the assets, but serves as a sub-adviser underneath a designated AIFM, where specific ESG and sustainable investing criteria have been included in their investment guidelines and relevant legal documents. ESG and Sustainability-focused mandates managed on behalf of clients may differ from an “impact investment” mandate; Adams Street has not historically managed vehicles with an impact investment mandate unless part of a client’s individual mandate; rather, Adams Street’s consideration of material ESG factors has been part of its investment process, which also includes consideration of a range of other factors including those relevant to an investment’s risk/return profile.
5. As of June 30, 2025. Represents the number of active GP relationships maintained by Adams Street which includes GPs that Adams Street is invested on a primary or secondary basis (or has been invested with since 2019), as well as GPs that Adams Street has invested alongside in co-investments or provided lending support through private credit deals.
6. Award issued October 14, 2025. Awards conducted by Real Deals. Self-nominations are received online for all categories and assessed by the Real Deals editorial team. Shortlist entries are Shortlisted entries are shared with a panel of judges comprised of senior representatives from leading LPs and PE firms, who deliberate and select a winner in each category. Adams Street did not directly or indirectly provide compensation for inclusion in this ranking. The description and the selection methodologies of rankings and awards can be subjective and will often vary; additional information on the ranking or award methodologies is available from the sponsor. These rankings or awards may not represent investor experience with Adams Street or Adams Street’s Funds or services, nor do they constitute a recommendation of Adams Street or its services. Such ranking or award is not necessarily indicative of Adams Street’s past or future performance.
7. Ranking and award issued September 27, 2022. Ranking and award conducted by Private Equity Wire in partnership with EthicsGrade is based on investment manager performance and initiatives spanning from March 2021 to February 2022. Adams Street did not directly or indirectly provide compensation for inclusion in this ranking. The description and the selection methodologies of rankings and awards can be subjective and will often vary; additional information on the ranking or award methodologies is available from the sponsor. These rankings or awards may not represent investor experience with Adams Street or Adams Street’s Funds or services, nor do they constitute a recommendation of Adams Street or its services. Such ranking or award is not necessarily indicative of Adams Street’s past or future performance.
8. Award issued October 18, 2024. Awards conducted by Real Deals. Self-nominations are received online for all categories and assessed by the Real Deals editorial team. Shortlist entries are judged by an independent panel of ESG specialists who deliberate and select a winner in each category. Adams Street did not directly or indirectly provide compensation for inclusion in this ranking. The description and the selection methodologies of rankings and awards can be subjective and will often vary; additional information on the ranking or award methodologies is available from the sponsor. These rankings or awards may not represent investor experience with Adams Street or Adams Street’s Funds or services, nor do they constitute a recommendation of Adams Street or its services. Such ranking or award is not necessarily indicative of Adams Street’s past or future performance.
9. Key Focus areas represent Adams Street’s aspirational goals and there can be no assurance that such goals will be achieved.
10. Adams Street has not historically managed vehicles with an impact investment mandate unless part of a client’s individual mandate; rather, Adams Street’s consideration of material ESG factors has been part of its investment process, which also includes consideration of a range of other factors including those relevant to an investment’s risk/return profile.
11. The level of diligence and/or oversight performed prior, or subsequent to, making an investment is performed in Adams Street’s discretion, including, but not limited to factors, such as the relationship with the GP and the relative size of the investment.
12. Certain organizations and their trademarks are included herein to which Adams Street is a signatory, has guiding principles to which Adams Street aims to adhere, or which Adams Street otherwise looks to and/or supports with regard to various ESG standards. Inclusion does not indicate that such organizations have endorsed Adams Street or its products or services, nor a guarantee that Adams Street will take any particular action with regard to ESG issues. Adams Street’s relationship with such third-parties is subject to change.
13. The summary of Adams Street’s current process with respect to ESG-related diligence and monitoring is provided for illustrative purposes only, is subject to change and there can be no guarantee that all investments will undergo each of the investment steps described above. While Adams Street considers broad ESG factors in its risk analysis and investment processes, the firm does not directly consider “adverse impacts of investment decisions on sustainability factors” as contemplated by European Union Regulation 2019/2088 at this time. Adams Street may adopt further measures which take into account adverse impacts of investment decisions in this context.
14. Adams Street has contracted with RepRisk AG (“RepRisk”), a leading ESG research provider whose coverage includes private companies. RepRisk screens, on a daily basis, over 100,000 public data sources in 23 languages to systematically identify any company or project associated with an ESG risk incident, per RepRisk’s research scope.
15. Opinions expressed below and in the associated podcast are those of the interviewee and do not necessarily represent the opinions of Adams Street Partners. The statements were made as of October 18, 2025, and are not subject to further update.
16. Results based on 100 LP respondents and 104 FA respondents.
17. Our sample size of survey respondents in 2024 was 175 for Buyout managers (162 in 2023 and 146 in 2022) and 60 for Venture managers (54 in 2023; 53 in 2022). There were 69 respondents from the Asia Pacific region in 2023 (61 in 2023; 58 in 2022), 52 from Europe (52 in 2023; 48 in 2022), and 99 from North America (95 in 2023; 85 in 2022). 242 GPs in total were assessed in 2024 (223 in 2023; 205 in 2022), including managers classified in categories other than those listed above. Our annual ESG survey excludes managers that have requested not to be included (e.g., due to lack of capacity internally to respond) or that have historically not responded to requests to participate.
18. See Greenhouse Gas Protocol for definitions of Scope 1, 2 and 3
19. Certain organizations and their trademarks are included herein to which Adams Street is a signatory, has guiding principles to which Adams Street aims to adhere, or which Adams Street otherwise looks to and/or supports with regard to various Diversity and Inclusion standards. Inclusion in the above list does not indicate that such organizations have endorsed Adams Street Partners or its products or services, nor a guarantee that Adams Street will take any particular action with regard to Diversity and Inclusion issues. Adams Street’s relationship with such third-parties is subject to change.
20. Adams Street by the Numbers as of September 30, 2025.
21. “Diverse Backgrounds” defined as representing professionals of color
22. Source: NGFS Climate Scenarios Technical Documentation V5.0. Orderly scenarios assume climate policies are introduced early and become gradually more stringent. Both physical and transition risks are relatively subdued; Disorderly scenarios explore higher transition risk due to policies being delayed or divergent across countries and sectors, e.g., (shadow) carbon prices are typically higher for a given temperature outcome; Hot house world scenarios assume that some climate policies are implemented in some jurisdictions, but global efforts are insufficient to halt significant global warming, resulting in severe physical risk including irreversible impacts; Too little, too late scenarios assume that a late and uncoordinated transition fails to limit physical risks.
23. Source: NGFS Scenarios Portal – REMIND-MAgPIE 3.3-4.8 integrated assessment model.
24. Based on the updated Risilience EVTR dataset and Adams Street data for an aggregate of three recent broad-based Adams Street portfolios with vintage years of 2020, 2021 and 2022 as of 31 December 2024. There can be no guarantee that such portfolios are necessarily representative of other Adams Street portfolios, including those with a more directed strategy, and analysis conducted on such portfolios may result in substantially different results. These models make material future assumptions. There can be no guarantee that such assumptions represent the complete range of possibilities, that such assumptions will prove accurate or that Adams Street’s portfolio will not experience greater or lesser variability than predicted. The EVTR dataset does not include scenario analysis data for the Financials or Real Estate sectors. As discussed herein, although Adams Street historically has low exposure to the Real Estate sector, Financials constitute a material portion of the relevant aggregate portfolio’s NAV. Inclusion of such sector could materially alter the results displayed herein.
25. The aggregate portfolio is comprised of a 69% exposure to underlying investments domiciled in North America, a 21% exposure to those domiciled in Europe, 8% to the Asia-Pacific region, and 3% to the rest of the world.
26. Consisting of three recent broad-based Adams Street portfolios with vintage years of 2020, 2021 and 2022 as of 31 December 2024. There can be no guarantee that such portfolios are necessarily representative of other Adams Street portfolios, including those with a more directed strategy, and analysis conducted on such portfolios may result in substantially different results. These models make material future assumptions. There can be no guarantee that such assumptions represent the complete range of possibilities, that such assumptions will prove accurate or that Adams Street’s portfolio will not experience greater or lesser variability than predicted.
27. Additional information on the outcome under other scenarios is available upon request.
Important Considerations: This information (the “Paper”) is provided for educational purposes only and is not investment advice or an offer or sale of any security or investment product or investment advice. Offerings are made only pursuant to a private offering memorandum containing important information. Statements in this Paper are made as of the date of this Paper unless stated otherwise, and there is no implication that the information contained herein is correct as of any time subsequent to such date. All information has been obtained from sources believed to be reliable and current, but accuracy cannot be guaranteed. References herein to specific sectors, general partners, companies, or investments are not to be considered a recommendation or solicitation for any such sector, general partner, company, or investment. This Paper is not intended to be relied upon as investment advice as the investment situation of individuals is highly dependent on circumstances, which necessarily differ and are subject to change. The contents herein are not to be construed as legal, business, or tax advice, and individuals should consult their own attorney, business advisor, and tax advisor as to legal, business, and tax advice. Past performance is not a guarantee of future results and there can be no guarantee against a loss, including a complete loss, of capital. Certain information contained herein constitutes “forward-looking statements” that may be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Any forward-looking statements included herein are based on Adams Street’s current opinions, assumptions, expectations, beliefs, intentions, estimates or strategies regarding future events, are subject to risks and uncertainties, and are provided for informational purposes only. Actual and future results and trends could differ materially, positively or negatively, from those described or contemplated in such forward-looking statements. Moreover, actual events are difficult to project and often depend upon factors that are beyond the control of Adams Street. No forward-looking statements contained herein constitute a guarantee, promise, projection, forecast or prediction of, or representation as to, the future and actual events may differ materially. Adams Street neither (i) assumes responsibility for the accuracy or completeness of any forward-looking statements, nor (ii) undertakes any obligation to update or revise any forward-looking statements for any reason after the date hereof. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward-looking statements. Adams Street Partners, LLC is a US investment adviser governed by applicable US laws, which differ from laws in other jurisdictions.
