Responsible Investing

At Alpha, we want to make a positive impact on the world around us through our investments. Responsible investment is a central tenet to the success of our portfolio companies and as a consequence, to the value we create for investors. Working together with the management teams we face the challenges of the future such as limited resources, climate change and regulatory change.

Our principles of responsible investing are applied throughout the investment process, from the identification of potential deals to their exits:

• In the pre-investment phase, we perform full ESG diligence.
• The result is documented with recommendations defining any remedial measures required, identifying opportunites to create value or red-flags which would prevent Alpha pursuing the deal further.
• If the deal is pursued, Alpha works with the management to remediate the risks outlined in the diligence, implement the value creation actions as well as establish targets to measure progress.
• Alpha report those progresses annually to its investors and to its stakeholders thereby holding itself and its portfolio companies accountable.

Responsible investment has become a fundamental part of an Alpha deal.

Alpha has set up a remuneration policy which is designed to promote sound and effective risk management and not to encourage risk-taking that is inconsistent with its risk appetite or the risk profiles of the portfolios which it manages. Alpha’s ESG Policy sets out how its investment process incorporates a consideration of ESG risks. Such risks form part of Alpha’s assessment of risk for the purposes of its remuneration policy.

Alpha’s approach to remuneration enables variable remuneration for employees to be adjusted for performance. This adjustment is not based solely on financial metrics. Qualitative nonfinancial performance metrics form a significant part of the assessment process. These metrics may include, for example, an employee’s failure to adhere to effective risk management, to comply with applicable regulatory rules, unethical behaviour or other behaviour that is contrary to Alpha’s Culture and Values. Consideration of these factors including where relevant an individual’s contribution to the Firm’s ESG-related efforts forms part of the employees’ performance assessment process.

You can find our latest ESG report HERE