Pathway seeks to understand the general partner's operational capabilities, transparency, and sustainability; the governance practices of a fund or portfolio company; and the industry focus and geographic operation, as well as other social or environmental impacts of a fund's investments. If a material ESG issue arises, it is presented to the Investment Committee to determine further action.
In this particular case, an existing general partner approached Pathway to invest alongside the general partner in an online payment platform. A majority of its revenue is generated from online gambling/betting. Given its material exposure to the online gambling/betting market, the co-investment team passed this information along to compliance to research if this could be a material issue. With the information collected from the general partner, the UNPRI, and other resources, Pathway ultimately proceeded with the opportunity.