Capital Dynamics Mid-Market Direct V

    In Short

    Strategy description

    The co-investment team makes direct investments in middle market companies alongside established private equity fund managers and specialist sponsors. Underlying portfolio company investments are diversified throughout the clean energy & industrial manufacturing/services, consumer, healthcare & financial services and technology & business services sectors. The team is active globally.

    SRI Highlights

    The co-investment team screens all opportunities against an exclusion list and prioritizes those focused on R-Eye™ criteria using a proprietary framework and appraisal process based on the SDGs. Appraisal includes both the sponsor/GP’s and the target company’s approach to responsible investment. The team strives to incorporate R-Eye™ criteria in the legal documentation of transactions, which proceed to completion. The team invests in leading companies with sustainable competitive positions, strong growth prospects and high responsible investment standards as determined in conjunction with the SDGs. The team invests in companies based in North America and Europe (including the United Kingdom) but typical portfolios also include a minority of holdings elsewhere (e.g., in the higher growth, emerging markets of Asia). After an investment has been made, the co-investment team continues to monitor its portfolio company holdings, also by using RepRisk. By focusing on long-term value creation through improvement in R-Eye™ parameters, the co-investment team intends to mitigate risks, enhance returns and improve exit opportunities. The team’s intention is to leave a portfolio company in a better state from a responsible investment perspective than the one in which it was found at the start of its stewardship.


    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