Responsible Investment Policy
Equistone believes that aligning the interests of our clients and portfolio companies with those of society at large can enhance returns for our investors. We believe that businesses must preserve the trust of stakeholders in order to create long-term value for investors, and we therefore take an interest in how companies in our portfolio manage these issues, and, on behalf of our clients, encourage companies to adhere to the highest standards of business conduct.
Equistone will continue to seek opportunities to create outstanding value for investors whilst making a positive impact on the communities our companies serve.
In making investment decisions, we aim to avoid investing in companies that do not:
- Respect human rights
- Comply with current legislation (including environmental and social legislation)
- Seek to comply with their industry standards and best practice
Our investments are normally made into private companies or public companies which we seek to take private. However, since our investment policy is to take controlling positions in portfolio companies or minority positions where we exert significant control, usually through a board seat, in practice we can satisfy many of the requirements of the United Nations Principles for Responsible Investment (“UNPRI”) relating to monitoring and intervention on behalf of our clients.
Furthermore, under the terms of our fund documentation, we will have regard to the following when making our investments:
- We will not make any investment in a portfolio company whose principal business is either (i) the manufacturing, distribution or sale of arms or ammunition or (ii) the manufacturing, distribution or sale of pornography, without the prior consent of our Investor Advisory Committee;
- We will not knowingly make an investment in a portfolio company which seeks to exploit child labour;
- In our review and consideration of prospective investments, we consider the ethical ramifications of our investment activities;
- We endeavour not to invest in enterprises which deliberately and repeatedly violate the rules laid down by the national authorities in which such enterprises operate;
- Although we ourselves are not yet a signatory to the UNPRI, a number of our investors are signatories, and we have regard to our investors’ policies to engage with us on these principles;
- We will include specific commentary on relevant ESG issues in our communication around new investments and in our reporting.