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    Capital Dynamics Mid-Market Credit I

    In Short

    Strategy description

    “Capital Dynamics Private Credit provides tailored debt capital solutions for private equity-sponsored, middle market companies. The Private Credit team finances transactions supporting leveraged buyouts, acquisitions, business expansions, refinancings, and short- to medium-term liquidity needs. The Team’s primary focus is on directly originated senior secured loans, including first lien, unitranche, and to a lesser degree second lien loans. The Team will also consider investments in mezzanine debt, preferred equity/equity co-investments, and secondary debt transactions. ”

    SRI Highlights

    Capital Dynamics’ Private Credit team performs preliminary reviews on all investment opportunities. These reviews incorporate various negative screening criteria, as dictated by industry/company, in an effort to eliminate any opportunities that would not adhere to the team’s responsible investment framework. The private credit team makes investments across a broad array of sectors and industries and, as a result, there are various opportunities for ESG-related value enhancement as well as various risks and unique concerns that pertain to each type of business. In the light of this, the team performs investment appraisal and due diligence directed at two entity types: the borrower/target company and the equity sponsor, the credentials of the latter, in particular. Investments are graded utilizing the team’s strategy-specific Capital Dynamics R-Eye™ rating system. After an investment has been made, the firm’s private credit team continues to monitor its investments through multiple layers of communication with both the borrower and private equity sponsor and by utilizing RepRisk.

    Exclusions

    International Norms: companies whose activities clearly infringe international agreements and which are complicit in human rights abuses (following the UN guiding principles and OECD guidelines).

    Fossil fuel / Thermal coal: Excluded from fund mandate

    All Weapons including Anti-personnel mines, Cluster munitions, Nuclear, Biological & Chemical Weapons

    Tobacco: Not within fund mandate

    Gambling: Not within fund mandate

    Pornography: Excluded from fund mandate

    Alcohol: Not within fund mandate