MV Credit is a private debt investor with a core focus on European headquartered businesses. MV Credit has a formalised, written ESG investment procedures which outlines both: (i) how we incorporate ESG risk and considerations in accordance with our values, and (ii) how we undergo ESG due diligence of prospective investments. ESG valuation is a mandatory step in our investment process; and by and large it can be divided into the following steps:
As a preliminary stage, MV Credit elects to not invest in certain sectors and industries and takes a very cautious approach to investing in all businesses that could potentially negatively impact vulnerable members of society (more on question FI 04.2).
Secondly, MV Credit only considers a potential investment after confirming the related PE sponsor is a UN PRI (or equivalent) signatory. If not, and on an exceptional basis, the Manager Board reserves the right to approve the sponsor relationship based on extensive alignment of ESG values.
Thirdly, a rigorous assessment of ESG risks is conducted throughout the overall credit due diligence stage.
Finally, the underlined ESG risks are debated during the investment committee/Board and constitute a key criterion when reaching the investment decision.