Fixed income strategy managed funds make private debt investments, i.e. mezzanine or unitranche loans to unlisted SME companies, typically to help an Equity Sponsor finance the acquisition of the company or to accelerate the growth. These assets are not actively traded but hold until the repayment of the loan.
As the Funds do not hold representation in Board of Directors of the portfolio companies (i.e. no voting power), addressed ESG issues revolve around company's ESG status at the time of the investment, and Equity Sponsor/company's targeted actions in regard to ESG.