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Investors toughen stance over ethics
By Dan Dunkley
Pornography, guns, drugs, cigarettes and alcohol have typically been industries buyout firms are keen to avoid.
Executives say investors often insist these sectors are on the blacklist. Informal arrangements have enabled investors to steer clear of potentially damaging investments in the past, being activated when firms conduct due diligence on possible acquisition targets.
Fund executives now predict that investors will be pushing for more formal agreements on ethical investment decisions before they are willing to back funds.
