The information on this website is for Institutional Investors only.

Specifically, the information on these pages should not be used or relied upon by the public of Hong Kong or any other type of investor from any other jurisdiction.

We recommend that you read our ‘Terms and Conditions’ before accessing this website.

Please select the option on the right to confirm you are a Professional Investor in Hong Kong and wish to continue.

IMPORTANT INFORMATION

We have seen an increase in the number of financial scams – including fraudulent websites attempting to harvest contact details from those accessing the site, and contacting them fraudulently purporting to represent M&G Investments.

Criminals are exploiting these times for their own gain using well planned, sophisticated methods in an attempt to catch you off-guard. Be extra vigilant and do not respond to any correspondence which you are unsure about. If in doubt, please contact us.

Audience

Responsible investment and private debt

28/02/2019

The key concepts of responsible investment are complementary to private debt with its core focus on analysing and managing risk through relationships with investee entities.

The idea of applying ‘mainstream’ responsible investment to private debt has both developed and matured during the decade since the financial crisis of 2007/8. However, little has been written on this topic.

The latest report from the United Nations-supported Principles for Responsible Investment (PRI), “Spotlight on responsible investment in private debt”, aims to provide guidance and case studies on best practices around the implementation of responsible investment in private debt.

“There are differences in the way practitioners implement responsible investment depending on whether they invest in public or private debt or equity, and in liquid or illiquid markets.” – PRI CEO Fiona Reynolds

Joining forces with the PRI

We are delighted to have been involved in the PRI’s latest initiative to explore environmental, social and governance (ESG) matters for fixed income investors. Through our years of experience investing in the private debt markets combined with our responsible long-term lending practices, we have not only helped to guide the content of the report but have also provided a detailed case study.

Case study: ESG due diligence of sponsor and corporate in the leveraged
loan market

Our case study, which is published alongside the PRI’s main report, looks at the drivers for integrating ESG in the leveraged loan market and the role of responsible, long-term lenders in helping to manage ESG risks on behalf of underlying investors. Here we describe a practical investment example where we performed extensive credit analysis and ESG-focused due diligence on a portfolio company and its private equity (PE) sponsor in order to evaluate the transaction and quality of the business, before deciding to invest in the new loan issue. Importantly, given the nature of the underlying business, we needed to assess the commitment to sustainable palm sourcing under new PE ownership:

ESG in practice: Unilever's global spreads division
View the UNPRI report

The information on this website is for Institutional Investors only. Specifically, the information on these pages should not be used or relied upon by the public of Hong Kong or any other type of investor from any other jurisdiction.