Sustainability in Private Equity investments

MAM Growth Equity (MAM GE) provides a growth platform for established and ambitious companies, where sustainability is considered a key part of the growth strategy. MAM GE aims to create value by helping target companies to develop their ESG practices as part of their growth story and to monitor their implementation and results.

MAM GE helps established companies with proven business performance to embark on a new growth trajectory, with sustainability as a key driver. Sustainability work focuses on identifying the risks associated with corporate operations and sustainability, and new ways to create value through ESG improvements. It further aims to help companies define and achieve their sustainability goals. Sustainability considerations are integrated throughout the investment lifecycle, from investment analysis to exit and beyond. The implementation of sustainability in private equity investments can be divided into three phases: the pre-investment analysis, the holding period and the post-exit period.

Pre-investment screening

The pre-investment due diligence process includes a comprehensive review of the target company's industry, identified potential risks and prospects. Sector-specific ESG risks and value creation opportunities are identified. ESG due diligence consists of two parts: general questions defined by MAM GE and sector-specific questions. The identification of sustainability objectives for the target companies is based on due diligence and subsequent analysis.

Holding period of the investment

During the investment holding period, the identified ESG topics are promoted in the same way as other strategic issues for growth. The objectives defined at the beginning of the holding period will be addressed in collaboration with the Board and other management, and in various working groups, and their achievement will be monitored. The value created by the promotion of sustainability factors is demonstrated during the ownership period.

Post-exit period

The post-exit objective is that sustainability practices are integrated into the company's operations as an integral part of the growth story, and that sustainable practices are maintained in the company after exit

Measuring and reporting ESG results is part of the ESG programme. The development of sustainability reporting is supported according to the resources of the company; smaller companies have fewer resources, and the aim is not to create burdensome reporting templates. Therefore, sustainability performance cannot be assessed based on reporting alone. It is essential to seek to be a trusted partner for the portfolio companies in identifying and developing sustainability approaches and objectives and to influence through ownership practices.

The Upright Project's net impact model is used to examine and analyse both individual portfolio companies and the portfolio.