Why ESG Capital Surges After Summits Create Risk for Private Investors

This article argues that ESG-driven capital inflows, triggered by high-profile geopolitical events like ecological summits, often distort risk and create unfavorable investment conditions for private investors. Institutional funds deploy capital based on mandates rather than fundamentals, leading to inflated valuations, predatory joint venture structures, and limited exit options. For UHNWIs and family offices, navigating these environments requires structural skepticism, especially around governance terms, sovereign guarantees, and politically entangled investments.