On a macro level the Fund will avoid providing financing to businesses in industries that (i) lack an economic reason for their existence, (ii) are in secular decline, (iii) have no or very low barriers to entry or (iv) are subject to structural changes that may result in the industry to disappear in the foreseeable future. The Fund will also avoid industries which are subject to significant cyclicality that has historically resulted in high insolvency rates and restructurings.
The Fund will also avoid investing in situations that pose binary risks which could stem, for example, from regulation, dependence on single customers or technological developments.
On a micro-level from a management and ownership perspective, the Fund will avoid financing businesses that have poor management, a lack of corporate governance or low-quality equity owners. On an operational level, the Fund will avoid situations that are operational turnarounds.
In addition, the Fund will also avoid any financing in businesses that would be not in accordance with Apera’s environmental, social and corporate governance (“ESG”) policy.