The PDM funds have been delivering value to investors for more than 10 years. A focus on Environmental, Social and Governance ("ESG") considerations is an important part of building lasting value in the PDM funds’ portfolio companies.
Environment, social and governance (“ESG”) and sustainability matters are considered as part of the standard investment analysis for direct lending investments.
Integrating ESG in the investment lifecycle
Asset selection and origination
- ESG screening of potential investments*
Due diligence and deal execution
- Potentially material ESG risks considered on direct lending investment as part of standard investment analysis
- Investment professionals access public information, relevant documents, and the sponsor or company management as appropriate and depending on the risk profile of the business
- Key ESG risks presented to the Investment Committee and General Partner
- Ongoing monitoring of material ESG risks identified pre-investment (as relevant) and emerging post-investment
- Engagement with selected portfolio companies on managing and improving ESG, particularly where the PDM funds have a board seat or board observer seat
- Reporting material incidents or developments to investors
* In terms of negative screening, although a defined exclusion list is not in place, potential investments are considered on a case-by-case basis as part of the pre-investment due diligence process, where consideration is given to ESG factors and sustainability concerns. There may be instances where PDM would not invest in certain sectors/sub-sectors due to strategic sustainability concerns.
For further information please click here to read the annual review.
Other PDM investment strategies
PDM is also developing its approach to integrating ESG considerations in its other investment strategies.
Permira is a signatory to the UN-supported Principles for Responsible Investment (“PRI”) and reports annually on its progress in integrating ESG in its investment processes.
PDM’s approach and progress was reported to the PRI, as part of Permira’s overall Transparency Report, for the first time in 2017.
Read the PRI transparency report 2016/17 here.
Adinah Shackleton, Permira’s Head of ESG, is also a member of the BVCA’s Responsible Investment Advisory Group and the affiliate network of Invest Europe’s Responsible Investment Roundtable.
For further information please contact Jennifer Collard.