1. Selection: Asset Selection & Origination
- ESG screening and analysis of portfolio investments and teams*
2. Entry: Diligence & deal execution
- ESG forms part of due diligence carried out by investment teams including compliance, liabilities, reputational issues, risks and opportunities. Potential issues and mitigation measures explored with support from ESG specialists
- External advisers engaged where required
- Material ESG matters integrated into value creation plans for monitoring over lifetime of investment
3. Stewardship: Value creation & monitoring Business transformation
- Material issues raised in due diligence addressed by portfolio company management teams, driven by Permira's level of control and influence over the portfolio company
- Engage with portfolio company management teams on ESG risks and/or opportunities, for example through ESG reviews or engagement on key topics. We believe portfolio companies that effectively manage ESG risk optimise financial performance in the long term.
- Financial and non-financial data gathered, monitored and addressed where appropriate
4. Exit: Monetisation
- Consideration of the progress made by portfolio companies on ESG during the life of the investment
- Consideration of informational needs for an exit process and sensitivities of likely acquirers / exit routes
* In terms of screening, potential investments are considered on a case by case basis as part of the pre-investment process, where consideration is given to ESG and sustainability risks. There may be instances where the Permira private equity funds' would not invest in certain sectors or sub-sectors due to the sustainability risks impacting the value of an investment.