ESG investing is emerging as a dominant strategy with limited partners and fund managers worldwide placing “increased importance” on the theme, according to Chibo Tang, a Gobi Partners executive who is actively sourcing deals across southern China’s Greater Bay Area (GBA) for a new Alibaba backed, HK$2-billion ($256.4 million) fund.

“Many large-scale institutional investors from university endowments to pension funds, listed companies and major corporates now prioritise ESG in their overall strategies,” said Tang, who leads Gobi’s efforts in investing capital from the AEF Greater Bay Area Fund (AEF GBA Fund).