Creating value through ESG

As an independent global financial services company, Alantra Partners, S.A. (hereinafter, “Alantra Group” or “the Group”) specializes in investment banking and alternative asset management – supporting entrepreneurs, companies, family-offices and investors, mainly in the mid-market segment – with a single mission: to make its clients’ businesses prosper.

To this end, Alantra seeks to align both its corporate strategy and that of its clients with the constantly emerging market trends and the interests of the communities, in order to achieve sustained growth over time through a results-oriented approach. Therefore, Alantra does not see sustainability as something parallel and independent from our way of doing business, but as a major lever for creating value. For Alantra, sustainability is simply a unique opportunity for exponential growth for our clients.

As a result, by the end of 2023 Alantra Asset Management already has several investment products dedicated to the energy transition and the decarbonization of the economy: Solar and Klima. In addition, the Company also counts with two funds – from both, the debt and the equity markets– that directly promote ESG characteristics through their investments: Alteralia III and PEF IV, respectively.

More information on the Group’s ESG performance and initiatives during the 2023 financial year can be found in Alantra Partners Sustainability Report.

In addition to the standard Sustainability Report, Alantra AM has introduced dedicated ESG impact reports for each of its investment vehicles. These reports aim to offer greater granularity in impact reporting, providing stakeholders with relevant insights at all levels—asset manager, fund, and investment. Check out the publicly available ESG reports of various Alantra AM divisions: Alantra Private Equity, Alantra Private Debt, Alantra Klima (Energy Transition), and Alantra Solar.

As an alternative investment fund manager, Alantra Investment Managers, S.L. (hereinafter “Alantra Asset Management”) is subject to Regulation (EU) 2019/2088 on sustainability disclosures in the financial services sector (hereinafter the “Regulation” or “SFDR”).

What is the Sustainable Finance Disclosure Regulation (SFDR)?

Adopted as part of the legislative framework for sustainable finance, the SFDR lays down harmonised transparency rules for financial market participants and financial advisers on how they integrate ESG factors into their investment decisions and financial advice and on their overall and product-related sustainability ambition. It is designed to limit possible greenwashing where financial products marketed as sustainable or climate-friendly, or claims about financial business’ involvement, do not in practice satisfy those standards.

How does Alantra integrate sustainability risks in the investment process (In response to SFDR Art.3)?

Alantra Asset Management considers that incorporating responsible investment criteria in the development of our activities and our decision-making processes ultimately provides long-term economic value and therefore, higher returns to our stakeholders (i.e. portfolio companies, investors, shareholders). As a result, ESG criteria and sustainability risks are integrated in all our investment strategies and have been taking a larger role in our investment processes over past years.

On this end, Alantra Asset Management has been a United Nations Principles for Responsible Investment signatory since 2019 and counts with a Responsible Investment Policy, which was last updated in 2022. This Responsible Investment Policy provides a holistic view of Alantra’s investment philosophy while it allows each investment strategy to integrate ESG and sustainability risks in the most pragmatic and sensible manner, according to each fund’s activity and nature.

More information can be found on Alantra Asset Management Responsible Investment Policy.

How does Alantra integrate sustainability in its remuneration policies (In response to SFDR Art.5)?

Alantra Asset Management, as part of Alantra Partners, S.A. (from now on, “Alantra Group” or “the Group”), is subject to Alantra Group’s remuneration policy.

The Remuneration Policy sets the basis for a remuneration scheme which takes into account the Group’s growth and results, as well as individual performance. Always promoting equal pay for men and women and non-discrimination on any other grounds (e.g. age, race, religion, etc).

Within the variable remuneration the Group considers different quantitative and qualitative criteria that go beyond the mere achievement of a financial benefit for the Group. These includes ESG related aspects such as the implementation of prudent risk management systems, the compliance of the Group’s internal control procedures, promotion of the sustainability initiatives established, the contribution to the development of the capabilities of other professionals, and the practice and advocacy of the cultural principles of Alantra Group.

More information can be found on Alantra Group Remuneration Policy.

Alantra Asset Management considers Principal Adverse Impacts on its investments (In response to SFDR Art.4)?

Alantra Asset Management considers the Principal Adverse Impacts (PAI) on the sustainability factors of its investment decisions within the meaning of Article 4.1 of the SFDR.

The information on how the PAI are considered and integrated into the investment and decision-making processes and the 2023 PAI indicators can be found in the Statement on principal adverse impacts of investment decisions on sustainability factors from Alantra Investment Managers, S.L.