Avenir believes that ESG issues have the potential to impact investment risks and returns and that considering these issues alongside traditional factors in investment decisions, can improve long term risk-adjusted returns.
Avenir’s investment strategy centres around a private equity mindset, which in practice means it invests with a long-term time horizon and runs a concentrated portfolio. Avenir assesses its investments as if it is buying the whole company. This makes the consideration of ESG issues particularly important to its investment strategy as it recognises that the longer the investment time-frame, the greater the impact that ESG issues are likely to have on a company’s underlying value. Avenir has therefore made the systematic assessment of ESG considerations an integral part of its investment process. Avenir believes this is necessary for the effective management of investments for the long-term and to deliver superior investment results for its clients.
Avenir’s investment philosophy is focused on a concentrated and long-term investment orientation. Avenir’s investment focus is not confined to the short-term financial performance of a company. Avenir expects its portfolio companies to become stronger and more valuable over time. A concern for their long-term sustainability is central to what Avenir does. Avenir believes over the long term a company’s operations are unsustainable if they cause irreparable damage to the environment, workplace or end consumers, and we will not knowingly invest in such companies.
For further detail on Avenir’s ESG integration process please refer to the Avenir ESG Policy