1789 Capital's assets under management swelled to $3.5 billion following a string of acquisitions and investments, the firm disclosed on Monday. The growth marks a clear turn toward anti-ESG strategies in private markets, with the firm positioning itself as a counterweight to environmental, social and governance-focused investing.
Dealmaking spree fuels asset surge
The firm, known for its conservative investment mandate, completed several large deals over the past 12 months. While it declined to name specific transactions, the asset jump from roughly $1 billion to $3.5 billion signals an aggressive push into sectors and companies that explicitly reject ESG criteria. Analysts tracking the space say the trend could reshape how private capital flows — moving away from sustainability-linked metrics toward traditional financial returns.
Why anti-ESG is gaining traction
1789 Capital's expansion comes as a growing number of institutional investors push back against ESG mandates, arguing they can drag down returns or force political stances. The firm has openly criticized ESG scoring systems, calling them arbitrary and counterproductive. Its latest deals appear to target industries like energy, manufacturing, and real estate that have been pressured to decarbonize — betting instead that regulatory pushback and consumer demand will keep these sectors profitable.
The shift is not limited to 1789 Capital. Several smaller funds have launched similar anti-ESG strategies in recent months, though none have matched the firm's scale. The broader effect on private markets could be significant: if large pools of capital start bypassing ESG funds, the pressure on companies to adopt sustainability measures may ease.
The $3.5 billion figure puts 1789 Capital among the larger dedicated anti-ESG funds globally. Investors are watching closely to see whether the firm's returns outperform traditional ESG-focused rivals. That comparison will likely determine whether the strategy remains a niche or becomes a mainstream force. The firm is expected to disclose its first-quarter performance in April, offering the first clear look at whether the dealmaking paid off.
