- Program will deliver a comprehensive offering to identify,
assess and engage with investments which align with clients'
decarbonization goals.
- The program will become Stafford's private equity strategy going
forward for new clients seeking to decarbonize or align with net
zero.
- In launching this program, Stafford is also aligning all its business
lines for the first time to generate explicit investible climate
solutions as it seeks to address the net zero challenge.
LONDON, April 26,
2024 /PRNewswire/ -- Stafford Capital Partners
("Stafford"), a leading
international private markets investment and advisory group, with
USD$7.9b under management has
launched its flagship Private Equity Decarbonization program
tailored for private equity investors who aspire to reduce the
carbon footprint of their portfolios and contribute towards
achieving their net zero targets while benefitting from the returns
on offer with private equity.
The move builds on the firm's 20-year track record of investing
behind sustainable themes in PE and can be seen in the context of
the growing global thirst by institutional investors for carbon
solutions, as they work to achieve their net zero goals. Privately
owned companies are in many ways the "last frontier" for
decarbonization focus, in contrast to businesses that are publicly
listed.
Stafford's clients will
co-invest alongside private equity firms, with the strategy
specifically designed to help both LPs and GPs achieve their carbon
emission reduction targets. For investors looking at these
strategies, Stafford will source
and facilitate the partnerships with GPs, and manage all aspects of
the transaction of these co-investments.
There are three core elements to the program:
- Bespoke Solution – Stafford will assist institutional investors
in understanding the emission profile of their current PE
investments and design and execute tailored plans for new
investments that align with their decarbonization
objectives.
- Maximising Risk-Adjusted Returns and Climate
Impact – Stafford will
seek to maximise risk-adjusted returns while meeting climate
objectives through co-investments in companies and drive the
decarbonization agenda.
- Engagement & Reporting – Stafford will report on portfolio progress and
advocate on behalf of its clients for the adoption of
decarbonization measures.
The program will focus on investments in expansion (scale-up)
and buyout-stage companies recognised for their maturity,
profitability, established technology, and predictable cash flows.
Stafford believes that this
approach offers an attractive risk/return profile and the potential
for high climate impact. With Stafford typically holding a controlling stake
in conjunction with other private equity firms, Stafford will exercise greater influence in
shaping the company's decarbonization agenda.
Depending on individual client requirements there are three
eligible investment categories across which the portfolio will be
strategically allocated to:
Carbon Transitioners: Companies committed to
implementing significant and measurable carbon emission reduction
targets.
Decarbonization Enablers (also known as Climate
Solutions): Companies offering solutions that facilitate the
decarbonization process and support the transition to a net zero
economy.
Low-Carbon Businesses: Investments in companies with
a proven track record of maintaining a best-in-class low-carbon
footprint. By including these businesses in the portfolio, clients
benefit immediately from their low-carbon footprint.
Stafford has developed a
proprietary database in which it tracks carbon emission data and
decarbonization progress of the private equity-owned companies in
its portfolios. This unique data set allows for a detailed analysis
of the three eligible investment categories and can help investors
to further define targets and develop the most optimal strategic
investment settings.
Commenting on the launch of the program Stafford's CEO Angus
Whiteley said: "This program demonstrates our
unwavering commitment to driving transformative change and
leveraging the power of private equity as a catalyst for innovation
and growth. As a committed member of the Net Zero Asset Managers
Initiative, we believe that addressing the challenges of climate
change is paramount in today's world. Our strategic focus on
decarbonization strategies reflects not just a business decision,
but also a conscious decision to systematically pushing
decarbonization efforts into the private equity asset
class.
"With over 20 years of experience working with specialist
managers in the sector on sustainability investing and ESG
integration, coupled with a proven track record of delivering a
17.8% net IRR on realised co-investments, Stafford is uniquely positioned to guide our
clients on this critical pathway to a more sustainable and
prosperous future."
Commenting further, Stafford Capital Private Equity Partner
Jesse De Klerk said: "This is a great opportunity for
us to closely work with our private equity clients to support them
and their portfolio companies to realistically achieve their
decarbonization targets. Through this programme, we will be able to
help our clients to develop the right investment strategy, set
targets, and take action to achieve real decarbonization.
"By partnering with Stafford Capital Partners, investors can
align their portfolios with sustainability objectives, drive
impactful change, and capitalise on the evolving energy
landscape".
About Stafford Capital Partners
Stafford is an independent
private markets investment and advisory firm with USD 7.9 billion in assets under management and
advice for more than 150 institutional clients worldwide. Founded
in 2000, Stafford has a global
team of 85+ professionals investing in infrastructure, timberland
& agriculture, and sustainable private equity through
secondaries, primaries, and co-investments. Stafford has been a UN
PRI signatory since 2010 and has committed to the Net Zero
Asset Managers initiative. It puts sustainability at the centre of
its investment process and implements a well-defined ESG program
across all strategies. In the UK, Stafford is authorised and regulated by the
Financial Conduct Authority (Firm Reference Number: 225586).
This is a marketing communication. This release neither
constitutes an offer to sell nor a solicitation to invest in any of
Stafford's funds. It is for
information purposes only and is not a recommendation. It does not
constitute an offer to sell or a solicitation to invest in any
jurisdiction where the offer or sale would be prohibited or to any
person not meeting the required investor criteria.
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