Approach

Investment Approach

SCROLL

01

Thematic Investment Approach

Our investment approach is as rigorous as other global PE firms, consisting of a professional team with a total of 30 years of experience. However, the major difference is our investment/portfolio management processes which are deeply integrated with sustainability factors, emphasizing ‘Measurable/Manageable’ environmental and social impacts for the portfolio company’s impact realization. This is a complex process requiring both expertise and immense amounts of effort. However, Sylvan has a strong belief that we can achieve both attractive commercial returns and social/environmental impact through our commitment.

In order to realize our beliefs, Sylvan has established a clearly defined approach to integrating sustainable factors (including overall ESG such as data security, tax transparency, not limited to *sustainable factors under ‘SFDR’) throughout the investment process as well as identifying and prioritizing **Principal Adverse Impacts (‘PAI’) of our investment decisions.

 

Competitive returns while contributing sustainbility

01
Alignment with
Investment theme &
UN SDGs
02
Measurable & Manageable ESGI
Measurable &
Manageable
ESGI
03
Portfolio collaboration & managment
Portfolio
collaboration &
managment

We contribute ESG and Impact inputs to the investment documents for PIM, ICM, and FICM, and regular investment reports to ensure consistency in assessing and addressing ESGI issues of investment targets and investee companies. We also keep the team focused and disciplined on sustainability factors with measurable and trackable indexes throughout the investment process, from deal origination (‘sourcing’) to screening, assessment (‘due diligence’), planning & management (‘portfolio management’) during ownership period to eventually the sale of the company (‘exit’).

*Sustainability factors under SFDR are listed as environmental, social, and employee matters, as well as matters relating to human rights, anti‐corruption, and anti‐bribery.
** We are in the process of preparing PAI assessment process on our due diligence process and developing Sylvan’s methodology for core PAI indexes evaluation

02

Sustainable Factors Integration

At Sylvan, we integrate ESGI factors into the investment process in order to capture the ESGI opportunities and reduce sustainability risks.
Please see the detailed Sylvan’s ESGI investment approach at the link below.

Pre-Investment

Initial Screening

Focuses on growth potentials with positive environmental/social impact

  • Negative Screening
  • SDGs Alignment
Initial Screening

Pre-Investment

ESGI Assessment

Due Diligence for ESG and Environmental/Social impact assessment

  • ESG Assessment
  • Impact Assessment
ESGI Assessment

Pre-Investment

ESGI Planning

Management planning including ESGI implementation plan

  • KPIs & Goal Setting
  • Monitiring plan
ESGI Planning

Pre-Investment

Investment Agreement

Consensus bulid-up

  • Ethics pledge
  • A.O.A
Investment Agreement

Post-Investment

Engagement & Monitoring

ESGI Management & Support

  • Regular monitoring & Reporting
  • Education & Training
Engagement & Monitoring

Post-Investment

Exit

ESGI Reassessment & Partnership build-up

  • ESGI Reassessment
Exit
  • /