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As a private equity investor, we are engaged in creating value for our investors and for Italian economy, by providing new capital to companies to support their dimensional growth, to enhance the increase of sustainability in our portfolio companies and our asset management company.
Entangled Capital has been a PRI signatory since August 2020.
We firmly believe that a strong responsible investment approach is key to maximizing opportunities and securing strategic advantage of our investments, whilst also reducing risks and complying with EU regulations.
In the same way, the asset management company undertakes to share sustainability objectives with its portfolio companies for an effective alignment on all levels.
Environmental qualities are the first criteria to be identified in the pre-investment analysis and evaluation process of each new opportunity.
It is essential for Entangled Capital to have a true and complete representation of the target companies by analyzing environmental aspects such as:
- type and energy consumption;
- waste and scrap treatment;
- atmospheric impact of industrial production;
- use and disposal of water.
On the outcome of the analyzes conducted by external consultants during the initial due diligence, the management team, with the support of the management of the target companies, identifies a plan of concrete actions to be included in the business plan which highlights the goals that can be achieved in order to enhance business’ sustainability and to increase awareness of the importance of environmental issues in the company’s management.
Social aspects are related to several business factors such as:
- relationship with the communities;
- type of sector;
- historical evolution of the company.
The assessment and improvement of these aspects may not be immediate and may be linked to a cultural change which could require a medium-long term process, consistent with the holding period usually experience by a Private Equity Fund in portfolio companies.
The first evaluations of the social criteria are carried out by the Entangled Capital team by comparing the target company with the best practices of the sector to which it belongs.
Subsequently, with the support of specialized consultants, the actions required to create value in this area are identified, such as, improvement of working conditions and the surrounding environment, taking into account the local social fabric in which the company operates, to achieve an improved social background.
The organizational structure of portfolio companies is the first aspect impacted by the managerial approach introduced by Entangled Capital in combination with the execution of the investment operation.
Our strategy aims to acquire majority stakes, with the provision of appointing professional directors to monitor the evolution of the target company and to implement the business plan.
The management of the portfolio companies is supported by tools:
- to organize key information;
- to better identify the activities and responsible professionals;
- to achieve the growth and value creation identified for the target.
ESG criteria inclusion
Fund investment process
- Business sustainability of the target company;
- ESG due diligence performed by consultant;
- Identification of KPI based on due diligence results and an action plan to implement concrete actions;
- Definition of new governance;
- Periodically check on portfolio company progress.
Asset management company
- Gender diversity in the governance;
- Sharing ESG goals with portfolio companies;
- Periodical identification of concreate aspect to be embedded in daily activities (paper consumption, plastic free, waste reduction);
- Annual report for LPs with information about portfolio and management company achievements.
- Carbon footprint analysis;
- CO2 emissions;
- Responsible consumption;
- Materials recycling;
- Clean Energy.
- Gender Equality;
- Employee Empowerment;
- Exclusion of non-ethical industries;
- Territorial Impact.
- Allocation of responsibilities;
- Organizational Chart;
- Stock Option Plans for management.
Discover more about our ESG Policy
Discover more about declaration pursuant art. 4 Regulation (EU) 2019/2088
Sustainable Development Goals
The Sustainable Development Goals are the model for achieving a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. Learn more and take action.