Holland, Mike2026-03-232026-03-232026-05-052025*A2025http://hdl.handle.net/2263/109240Mini Dissertation (MBA)--University of Pretoria, 2025.This study investigates how private equity (PE) firms in South Africa interpret, prioritise, and integrate Environmental, Social, and Governance (ESG) factors during the pre-investment phase, with a focus on the manufacturing sector. Drawing on qualitative interviews with PE professionals, it examines the mechanisms, drivers, sector-specific dynamics, barriers, and trade-offs that shape ESG decision-making. The findings reveal a hybrid integration model, where global standards are adapted through local governance norms, firm-level tools, intuitive heuristics, and pragmatic judgement. ESG integration is primarily driven by legitimacy demands from limited partners (LPs), particularly development finance institutions (DFIs), as well as regulators, and is frequently prioritised as a condition for capital access. Key barriers include limited internal capacity and portfolio-level gaps in ESG awareness, skills, and expertise, as well as inadequate infrastructure to collect and interpret ESG data. These constraints are compounded by the ongoing tension between ESG priorities and financial return expectations, particularly in the manufacturing sector, where firms must navigate sector-specific materiality under internal capacity limitations. While the financial value of ESG integration has not yet been fully realised at exit, firms anticipate firms anticipate that it will generate longterm financial benefits. The study contributes to literature by framing ESG integration as a strategic, interpretive process shaped by stakeholder expectations, institutional norms, and contextual realities in emerging markets.en© 2025 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.UCTDESG integrationPrivate equityPre-investmentDecision-makingManufacturingMini Dissertationu25172957