Responsible Investment


Alpha as a UN PRI signatory

We believe that exchanging best Environmental, Social and Corporate Governance (ESG) practices within the investment industry will allow us to improve our ESG processes and to share our experience with other investors. Therefore, Alpha Private Equity Funds Management Company became a signatory to the United Nations’ Principles for Responsible Investment (UN PRI) in November 2011. This public commitment is also an evidence, for all our business partners, of the long-term horizon we have in mind.

In accordance with the terms of the Principles :

  1. We incorporate ESG issues into our investment analysis and decision making
  2. We are active owners and incorporate ESG issues into our ownership policies and practices
  3. We seek appropriate disclosures on ESG issues from the entities we invest in
  4. We promote acceptance and implementation of the Principles within the investment industry
  5. We work together to enhance our effectiveness in implementing the Principles
  6. We report on our activities and progress towards implementing the Principles.


ESG within Alpha’s organisation

Above and beyond core and financial analysis, we incorporate ESG criteria into our investment policy and the monitoring of our investments, as we believe these non-financial criteria can positively impact the performance of investment portfolios.
This ESG approach is implemented within Alpha as follows:

  • Our ESG Investment Policy provides for a comprehensive analytical framework covering all key ESG aspects.
  • We have appointed an ESG responsible within the organisation, who ensures compliance with the ESG Policy and who oversees the monitoring of ESG aspects in our Portfolio companies
  • We have created transparency towards our investors on ESG results thanks to specific ESG reports which are communicated on a regular basis and on each investment / divestment event
Those 3 measures have practical consequences during the whole investment cycle:

Decision to invest

When making investment decisions, ESG factors are one of the indicators that we will consider. We have notably implemented an exclusion approach that helps us in our choices. This decision is supported by the systematic use of our ESG Acquisition Report and the use of specialized external resources, such as consultants, which is part of our Due Diligence procedure.
This initial work always results in the identification of possible actions to be taken for improving identified weaknesses.

Investments

During the investment period, we insure the follow-up of the action plan, the monitoring and evaluation of progress at the level of the portfolio companies.
The results are translated into our Annual ESG Report, which is communicated to our investors.

Divestments

The ESG improvement realised throughout the investment period allow us to point out the strengths of each portfolio companies we intend to sell. This may have a significant impact during the negotiations with potential buyers.
Thanks to the ESG Exit Report sent to our Investors after the exit, they are able to see the evolution of ESG aspects from acquisition until exit. It summarizes the positive impact of Alpha investment on ESG issues within all investment companies.