Products which have sustainable investment as their objective
SFDR requires that information provided in a pre-contractual disclosure in respect of a product which has sustainable investment as its objective be published on a website.
This disclosure is made in respect of the AP Impact Offshore Fund SCSp SICAV-RAIF (the “Partnership”).
Sustainable Investment Objective
The Partnership has been established to act as a feeder fund that will invest substantially all of its assets in the Apax Global Impact Fund (“AGI”). AGI targets buyout and growth investment opportunities in companies which deliver Impact – defined as the creation of positive societal and/or environmental impact by a company, generated by its core business activities (“what the company does”) as well as how such company is managed from a social, environmental and/or governance perspective (“how a company operates”). Accordingly the portfolio manager of AGI (the “AGI Portfolio Manager”) has determined that AGI should be classified as an investment product that has sustainable investment as its objective within the meaning of Article 9 of the SFDR.
Since the Partnership’s investment object is to invest all of its assets in AGI, Citi Private Advisory, L.L.C. (the "Investment Advisor") has determined, and Waystone Management Company (Lux) S.A. (the "AIFM") acknowledges that the Partnership should also be classified as an investment product that has sustainable investment as its objective within the meaning of Article 9 of the SFDR.
The Investment Advisor and the AIFM will utilise the assessments, measurements and monitoring information provided by the AGI Portfolio Manager regarding the impact of the sustainable investments selected for AGI, the data sources and screening criteria for the underlying assets, and the relevant sustainability indicators used to measure the overall sustainable impact of the financial product.
Further information on the methodology information used in respect of AGI can be found on the website for AGI.
Integration of Sustainability Risks; Assessment of likely impacts of sustainability risks
The Investment Advisor has implemented a Sustainability Risk Standard in order to integrate the consideration and assessment of sustainability risks within the meaning of the SFDR into its investment selection process as described below. The Investment Advisor does not select funds to be offered based solely on their ESG status, credentials, reporting or disclosure.
“Sustainability risk” is defined in Article 2 of the SFDR as “an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment”.
In relation to integrating sustainability risk into its selection process for deciding whether to establish the Partnership in order to participate in AGI, the Investment Advisor implemented a two-tier assessment covering both the AGI Portfolio Manager and AGI. At the manager level, the relevant investment research and operational due diligence teams assess how far ESG and in particular the sustainability risk is embedded into the organisation, its governance, the day-to-day running of AGI and the AGI Portfolio Manager’s investment decision-making process. At the fund level, the investment research team assess the extent to which the AGI Portfolio Manager has integrated sustainability risk into its investment decision-making process for AGI. The manager and fund level sustainability risk assessments are then combined to produce an overall sustainability risk profile.
As part of the Investment Advisor’s selection process, the overall sustainability risk profile of the AGI Portfolio Manager and AGI is considered along with other factors, including the depth and breadth of experience within the investment team, a consistent and disciplined investment approach, track record, market opportunity, and other risk factors. Accordingly, sustainability risk is considered in the round on an integrated basis, along with these other factors, which collectively drive an overall assessment of AGI by the Investment Advisor.
For information regarding how the AGI Portfolio Manager and AGI integrate sustainability risks into their investment processes, please refer to the website for AGI.
Sustainable Investment Reporting
As the Partnership and AGI are newly formed, periodic reporting is not currently available. Once periodic reporting has been conducted for the Partnership and AGI, such reporting will be made available here.