Investment Approach
Annual sustainability investments are projected to double to over $500 billion by 2020 to meet the goals of climate changes and help global economies become more resource efficient. This resilient performance demonstrates that sustainability is not just another bubble, but is a solid, maturing investment theme with long-term prospects.
SGM will invest via Convertible Loan Note (“CLN”) instrument in later-stage companies in Europe and North America in the high growth sustainable and efficiency sectors. The majority of these later-stage companies have a minimum €10 million revenue (going up to or over €100 million) and proven commercial technologies mitigating venture or technology risk. They typically have a backlog of revenues with expected near-term paths to exit and require expansion capital to unlock the value at this stage. The Convertible Loan Note not only provides cost-effective growth capital to these companies, but also allows the Partnership to manage financial downside risk by structuring a level of minimum return at exit.
As part of SGM’s broader investment mandate, SGM supports the UN PRI (United Nations Principles for Responsible Investing), the IFC (International Finance Corporation) ESG, and the ILPA (International Limited Partners Association) Principles. SGM believes that Environmental, Social and Governance (ESG) issues can affect the performance of investment portfolios. SGM recognizes that investing can be both financially and socially profitable. Within SGM, asset managers complement traditional, quantitative techniques of analysing financial risk and return with qualitative and quantitative analyses of ESG policies, performance, practices and impacts.
SGM will invest via Convertible Loan Note (“CLN”) instrument in later-stage companies in Europe and North America in the high growth sustainable and efficiency sectors. The majority of these later-stage companies have a minimum €10 million revenue (going up to or over €100 million) and proven commercial technologies mitigating venture or technology risk. They typically have a backlog of revenues with expected near-term paths to exit and require expansion capital to unlock the value at this stage. The Convertible Loan Note not only provides cost-effective growth capital to these companies, but also allows the Partnership to manage financial downside risk by structuring a level of minimum return at exit.
As part of SGM’s broader investment mandate, SGM supports the UN PRI (United Nations Principles for Responsible Investing), the IFC (International Finance Corporation) ESG, and the ILPA (International Limited Partners Association) Principles. SGM believes that Environmental, Social and Governance (ESG) issues can affect the performance of investment portfolios. SGM recognizes that investing can be both financially and socially profitable. Within SGM, asset managers complement traditional, quantitative techniques of analysing financial risk and return with qualitative and quantitative analyses of ESG policies, performance, practices and impacts.