We Think, Act & Succeed Differently

PEAL's Core Principles

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A CULTURE OF INTEGRITY, FAIRNESS AND RESPONSIBILITY

  • PEAL was founded on a culture of diversity, respect and inclusion where differentiated backgrounds are valued and celebrated.

  • Our goal is to integrate these core principles into our portfolio companies.

  • We are open and transparent; we tell it like it is.

  • We do not compromise our integrity.

  • We are committed to the communities we work and invest in.

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CREATING VALUE FOR OUR INVESTORS

  • We have a forward thinking and innovative approach to investments.​

  • We believe a commitment to consider ESG is crucial to building long term value in our portfolio companies.

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OPERATIONAL EXPERIENCE

  • We are disciplined and results-focused.

  • We aim to operate at the highest standards.

  • We are problem solvers and often find solutions others miss.

  • We focus on financial rigor and a risk discipline.

  • We ensure our business and portfolio companies operate with the best internal governance and controls.

  • We are execution orientated.

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A STRONG TEAM

  • We hire, train and retain great, diverse employees.

  • We build teamwork and loyalty.

  • Our goal is to be strong leaders.

  • We value fairness, openness and honesty above everything else.

Environmental, Social & Governance

Environmental, social and governance (“ESG”), regulatory, geopolitical and reputational considerations form part of PEAL’s core investment principles. It is our belief that an investment process that fully integrates ESG considerations is key to delivering sustainable, long-term returns to our portfolio management teams and investors. 

With the backdrop of an increasingly challenging and constantly evolving world economy, PEAL believes that companies that give thoughtful consideration to how to manage ESG risks will be better positioned in the future. PEAL’s approach to integrating and managing ESG considerations seeks to reduce risk while continuing to provide value throughout the life of its investments.

Assessment and consideration of sustainability risks are fully integrated into PEAL’s investment process through PEAL’s ESG Policy and Procedures and are summarized below in the following four stages:

 

First Stage: Pre-Screening

  • This stage is exclusionary screening or negative screening. This ensures PEAL avoids certain investments based on values, ethical concerns or preferences. Where the risk is relates to an environmental issue and a solution is not immediately obvious, PEAL will pass on the investment.

  • Internal review of “gating issues” by the PEAL Gating Committee to determine whether there are any critical Sustainability or Reputational concerns with regards to target companies, stakeholders, clients, operators, issues and where relevant sponsors.

 

Second Stage: Conduct Diligence on company specific relevant issues

  • Complete commercial, legal and compliance due diligence. This forms part of the ESG due diligence; whether there are any ESG issues, whether mitigations can be implemented or whether the potential investment has an ESG policy that has been consistently applied.

  • Evaluate material ESG/ Sustainability risks and opportunities applicable for the industry.

  • If specific ESG/Sustainability risks are found related to the company, PEAL will consider completing independent, third party due diligence relating to the issue e.g. environmental reports.

 

Third Stage: Document and Review Findings*

  • Include key risks and opportunities in the Investment Committee discussions and memorandums as they relate to the target company.

  • Mitigants to material ESG/Sustainability risks are identified and assessed along with upside potential of the investment. The Investment Committee may terminate the investment if the mitigants are not deemed to be sufficient.

  • If the Investment Committee are satisfied and the transaction is approved, this may be on condition that the valuation is adjusted to account for ESG/Sustainability risk.   

  • PEAL will track relevant findings, even when no additional actions are needed.

 

Fourth Stage: Monitor and Manage

  • Communicate and engage with portfolio companies on ESG improvements and value creation.

  • Seek commitment from portfolio company by incorporating ESG issues into the 100 day plan with a 2-3 year horizon timeline which is continuously reviewed.

  • Document efforts on relevant issues or incidents.

Escalation Process:

  • If at any point in time during the life of the investment there are material ESG issues (negative media, issues with management, issues with operations), the Deal team will assess the issue and escalate to the Investment Committee to make a recommendation on how to mitigate the issue or to terminate the investment.

 

* PEAL acts in an advisory capacity and does not take investment decisions on behalf of any funds its advice relates to. Any references to an investment committee is to an investment committee which will provide an investment recommendation to the manager of funds which PEAL advises in relation to.