Strategy

For over 80 years, PGIM Private Capital’s (PPC) investment approach has been defined by thoughtful analysis, long-term thinking and strong relationships. We believe that integrating Environmental, Social, and Governance (ESG) factors into this approach is a necessary part of successful long-term investing. Considering relevant ESG factors in our investment process is a fundamental part of generating attractive risk adjusted returns for our clients. Our long history investing in the renewable energy, education, and transportation infrastructure sectors (among others) has been underpinned by thoughtful consideration.

ESG Integration

Integrating ESG considerations is inherent to our investment process. As a long-term investor, our expected holding period for many investments is ten years or more, and we have had the good fortune of maintaining continuous investment relationships with many businesses and institutions extending over several decades. This has required an investment approach oriented around sustainable practices. Our approach strives to fully reflect risks and opportunities presented by material ESG factors as a component of our overall investment thesis. At all stages of our investment process we strive to explicitly identify, analyze, and mitigate relevant ESG factors and risks.

 

ESG factors are a component of our comprehensive investment analysis. Specifically, our investment teams explicitly analyze the following factors:

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While we have identified these specific factors based on our investment experience, our investment teams are responsible for identifying and analyzing all material risks and considerations that may apply to individual investments or strategies.

Engagement

Regular engagement with companies in our investment portfolios, including dialogue related to ESG factors, has always been a critical part of our investment process. As a relationship-based investor, we strive to cultivate active dialogue with the companies and institutions in which we invest and meet face-to-face with many companies several times each year.

Responsibility for ESG

PPC investment teams are responsible for explicitly identifying and analyzing material ESG factors as a component of the overall investment process. Our responsible investment objectives are set and overseen by the ESG Committee, which is comprised of senior leaders of PGIM Private Capital. We provide ongoing training on ESG topics to all investment staff.

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SFDR Note:  PGIM Private Capital (Ireland) Limited (“PPC Ireland”) is part of the PGIM Private Capital group.  PGIM Private Capital is the private credit arm of PGIM, Inc.  The EU Sustainable Finance Disclosure Regulation (“SFDR”) requires PPC Ireland to formalise how sustainability is integrated into our business and processes, and to make new public and client-facing disclosures on sustainability matters.  This PGIM Private Capital ESG Statement is a summary of PPC Ireland’s Sustainability Risks Policy for purposes of the SFDR.