At MV Credit, our goal is to deliver long-term risk-adjusted returns and effective investment solutions through responsible investing. Environmental, social and governance (“ESG”) considerations contribute to this goal, and are important to the firm’s philosophy, the financial markets, and society as a whole. ESG considerations are inherently part of our investment decision making. Alongside the monitoring of risks in our portfolios, ESG is an important aspect of our risk management. We assess risk at the market, sector and company levels. We work to promote good business practices, and we believe there are opportunities for investing in companies and technologies that enable more environmentally friendly economic activity.
MV Credit’ Approach to ESG Integration & Investment Process
Each investment process considers ESG integration according to MV Credit’s investment philosophy. We believe that ESG risks and opportunities stem from factors including an issuer’s management strength and strategy, the use of human and natural resources, as well as regulatory and political considerations. ESG factors can be critical to evaluating the sustainability of an issuer and the expected impact on investment performance. MV Credit’s investment team assesses the materiality of these factors in each investment decision. As part of our ESG investment process, we incorporate:
i. Negative Exclusion (i.e. the exclusion of specific sectors, issuers, or themes where client or regulatory restrictions apply).
ii. Positive Screening (i.e. investing in companies demonstrating positive ESG performance relative to peers).
iii. ESG integration (i.e. the inclusion of ESG factors alongside traditional financial analysis of assets by investment managers).
Advocacy & Transparency is at the Core of MV Credit
We believe that responsible investing requires commitment from all the participants in the industry; from investors and investment managers, to the Private Equity (“PE”) sponsors we invest alongside with, and ultimately the companies we invest in.
Engagement through bilateral discussions with our investment partners is an integral part of our fundamental analysis across all investments. ESG criteria are an inextricable part of this analysis. Direct communication between our investment professionals, our PE partnerships and issuers facilitates the assessment of the quality of a company’s management, strategy, and operations.
At the firm level, MV Credit seeks to collaborate with various investor and industry groups to foster best investment management practices. Consequently, we participate in workshops, panels, and relevant media activities to help increase public awareness around ESG. By doing so, we hope to demonstrate the benefits of good ESG practices both for companies and the investment industry.
MV Credit is a Signatory to the UN Principles for Responsible Investing (PRI)
MV Credit has been a PRI signatory since 2012. In signing the principles, we as investors publicly commit to adopt and implement them where consistent with our fiduciary responsibilities. We believe the PRI provides a rigorous framework for monitoring the integration of ESG into our investment processes, with the goal of meeting our clients’ investment objectives.
Corporate ESG Practices at MV Credit
MV Credit strives to operate in an environmentally conscious manner through a variety of sustainable corporate actions. MV Credit endeavours to minimise its impact on the environment by implementing stringent office recycling, reduced printing strategies and issuing all employees with metal re-usable water bottles in a bid to reduce waste plastic consumption. We support flexible work schedules and telecommuting, both for the good of our employees and for their impact on our carbon footprint. MV Credit has sought to be carbon neutral from 2019 onwards and offsets all office CO2 emissions.
The MV Credit ESG Committee is an active member in the Natixis Investment Managers’ (“Natixis IM”’) facilitated Climate Change Working Group, whose mission is to reduce the firm’s environmental footprint utilising a systematic approach that educates our workforce and seeks to bring about behavioural changes, for a more sustainable and healthier future.
At MV Credit, we believe team diversity is key to our investment success as diversity enhances and drives critical thinking. Our firm strives to attract, nurture, and retain staff that is talented and diverse. To that end, MV Credit is proud to be ahead of the curve in the private debt industry in terms of female representation across both junior and senior level positions. In addition to gender diversity, MV Credit comprises over 16 different nationalities and a variety of cultural backgrounds MV Credit is also a sponsor and active participant in the Natixis’s IM Pride Committee.
At MV Credit, we also feel strongly about the importance of playing a proactive, positive role in the local community. We are proud to support Groundwork, a London-based charity that, amongst other projects, works with people living in London’s most vulnerable communities by helping to create jobs and provide employment skills training for young adults. In 2018 and 2019, we hosted career enrichment days at our London offices which saw groups of 15 to 16-year-old students spend a day with members of the MV Credit team as part of Groundworks ‘Improving Peoples Prospects – Aspire Higher’ programme. Further information is available on our website under ESG.
For 2020, the employee selected initiative will be supporting a UK charity working to plant urban trees and create greener cities. Going forward, MV Credit further endeavours to encourage our employees' own charitable efforts through firm-sponsored opportunities and by matching their charitable donations.
Reinforced by the culture of Natixis IM, operational excellence and proper governance are critical to the way we run our business. Firm oversight and direction reside first and foremost with our Board of Directors together with various internal committees (Management, Risk & Compliance, Allocation, Human Resources, Remuneration, and ESG). The exercise of proper oversight and the highest standard of conduct is further supported by Natixis IM as well as the work done by our independent auditors (KPMG, Mazars). Beyond complying with legal provisions and mitigating operational risks, our processes enable us to provide a transparent and high-quality level of service to our investors.
Senior management sets the tone at the top by articulating the organisation’s strategy and values, and by maintaining our culture of accountability, transparency and compliance. Specifically, with respect to our ESG initiatives, MV Credit named CEO Frederic Nadal the Head of ESG in 2018. Supported by the ESG Committee, he is responsible for leading the ESG initiatives at the firm, supporting the sustainability efforts as part of the firm's own governance, ensuring that the investment teams have access to any additional ESG training and research as needed, and helping to provide ESG solutions for our clients.
At MV Credit we believe ESG is all about progress and as such our ESG initiatives and policy are constantly evolving. We strive to improve our processes on a continuous basis with the aim to be best in class in leading initiatives within ESG.
Last updated September 2020
 From 2012 under CapVest Partners LLP and 2016 under MV Credit Partners LLP.
 As at September 2020.