Responsible Investment Policy

Responsible Investment Policy

Park Square Capital, LLP and its affiliates(1) (“Park Square” or the “Firm”) focus on delivering attractive risk-adjusted returns to investors, based on a rigorous assessment of all risks including analysis of material ESG issues.

Given the limited upside and potentially significant downside of credit investing, the focus of Park Square’s ESG analysis is on understanding downside risks.

Park Square believes ESG factors can potentially have a material impact on an issuer’s long-term financial performance as poorly managed ESG risks can lead to inefficiencies, operational disruption, litigation and reputational damage, which may ultimately impact an issuer’s ability to meet their financial responsibilities or negatively impact company profitability. Park Square supplements its traditional financial analysis by reviewing ESG related management practices in order to identify potential risks. In summary, Park Square believes well run businesses make better, lower risk, investments.

The Firm considers issues both as part of the detailed due diligence carried out before an investment, and as part of the ongoing monitoring of portfolio companies. Park Square will decline opportunities that it believes provide an inappropriate exposure to ESG risks. Park Square believes that incorporating ESG issues into its business decisions is an important part of its investment strategy and helps develop the sustainable long-term value of its investments.

Consistent with its fiduciary responsibilities to its investors, Park Square works with financial sponsors and portfolio companies to understand and address ESG risks.

Park Square is committed to developing its Responsible Investment Policy and integration in-line with internationally established guidelines and current industry best practices.

Please see here for Park Square’s Responsible Investment Policy

Please see here for the Climate Addendum to Park Square’s Responsible Investment Policy

(1) includes Park Square Capital Luxembourg Management Services S.à r.l