In its role as an active strategic financial partner to companies, Proventus Capital Management views solid ethics and a holistic approach to sustainability as a requisite for businesses to generate long-term returns. Proventus Capital Management is, with its background as a family-owned company with active ownership in other businesses, an active credit investor that remains close to its portfolio companies through continuous dialogue. Corporate sustainability is an integral part of the investment process – from evaluation to the close of an investment.
Proventus Capital Management manages the alternative investment funds within Proventus Capital Partners (the” Funds”). Proventus Capital Management intends to achieve the expected net return to the investors of the Funds by pursuing an active credit investing strategy where solid ethics and a holistic approach on sustainability is a requisite for businesses to generate long-term returns.
Through the Funds’ financing activities, Proventus Capital Management is exposed to the actions of portfolio companies relating to environmental- and social aspects as well as anti-corruption measures (“Sustainability aspects”). Inadequate handling of the Sustainability aspects can directly or indirectly affect the returns of the Funds. The portfolio companies vary in size, geographical presence, industry etc., and, therefore, the relevance of the Sustainability aspects will vary in accordance with the portfolio companies.
An integral part of Proventus Capital Management’s investment process is the identification and evaluation of all relevant risks, which includes factors relating to Sustainability aspects. Once identified, such risks and aspects are used to set the main performance indicators. The performance indicators are then a part of the regular follow-ups that are undertaken during the span of an investment.
Proventus Capital Management has adopted internal regulations, which, amongst other matters, relate to the management of the Funds, including a policy on ethics and sustainability as well as a code of conduct. The code of conduct is a tool to communicate the core values of Proventus Capital Management and its perspective on the Sustainability aspects. The ethics and sustainability policy also ensures that the Funds do not provide financing to companies with unethical business models.
The ethics and sustainability policy provides the basis for an evaluation of environmental effects, management of social aspects and anti-corruption measures in conjunction with the evaluation of an investment. As part of the overall assessment of social aspects, the criteria reflected in the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child are used to assess human rights and the criteria reflected in the International Labour Organization’s Convention are used as the basis for assessing labour aspects.
All potential portfolio companies are evaluated from a sustainability perspective. Proventus Capital Management has also created an ESG (Environmental, Social, Governance) committee that is involved in the evaluation of a potential investment where the Sustainability aspects are a substantial part of the overall risk assessment. The ESG committee is composed of Proventus Capital Management’s CEO, members of the investment group as well as external parties with specific relevant sustainability expertise.