Stafford Capital Partners launches flagship Private Equity Decarbonization Program
Program will deliver a comprehensive offering to identify, assess and engage with investments which align with clients’ decarbonization goals.
The program will become Stafford’s private equity strategy going forward for new clients seeking to decarbonize or align with net zero.
In launching this program, Stafford is also aligning all its business lines for the first time to generate explicit investible climate solutions as it seeks to address the net zero challenge
London, 25 April 2024 – Stafford Capital Partners (“Stafford”), a leading international private markets investment and advisory group, with USD$7.9b under management has launched its flagship Private Equity Decarbonization program tailored for private equity investors who aspire to reduce the carbon footprint of their portfolios and contribute towards achieving their net zero targets while benefitting from the returns on offer with private equity.
The move builds on the firm’s 20-year track record of investing behind sustainable themes in PE and can be seen in the context of the growing global thirst by institutional investors for carbon solutions, as they work to achieve their net zero goals. Privately owned companies are in many ways the “last frontier” for decarbonization focus, in contrast to businesses that are publicly listed.
Stafford’s clients will co-invest alongside private equity firms, with the strategy specifically designed to help both LPs and GPs achieve their carbon emission reduction targets. For investors looking to invest in these strategies, Stafford will source and facilitate the partnerships with GPs, and manage all aspects of the transaction of these co-investments.
There are three core elements to the program:
Bespoke Solution – Stafford will assist institutional investors in understanding the emission profile of their current PE investments and design and execute tailored plans for new investments that align with their decarbonization objectives.
Maximising Risk-Adjusted Returns and Climate Impact – Stafford will seek to maximise risk-adjusted returns while meeting climate objectives through co-investments in companies and drive the decarbonization agenda.
Engagement & Reporting – Stafford will report on portfolio progress and advocate on behalf of its clients for the adoption of decarbonization measures
The program will focus on investments in expansion (scale-up) and buyout-stage companies recognised for their maturity, profitability, established technology, and predictable cash flows. Stafford believes that this approach offers an attractive risk/return profile and the potential for high climate impact. With Stafford typically holding a controlling stake in conjunction with other private equity firms, Stafford will exercise greater influence in shaping the company’s decarbonization agenda.
Depending on individual client requirements there are three eligible investment categories across which the portfolio will be strategically allocated to:
Carbon Transitioners: Companies committed to implementing significant and measurable carbon emission reduction targets.
Decarbonization Enablers (also known as Climate Solutions): Companies offering solutions that facilitate the decarbonization process and support the transition to a net zero economy.
Low-Carbon Businesses: Investments in companies with a proven track record of maintaining a best-in-class low-carbon footprint. By including these businesses in the portfolio, clients benefit immediately from their low-carbon footprint.
Stafford has developed a proprietary database in which it tracks carbon emission data and decarbonization progress of the private equity-owned companies in its portfolios. This unique data set allows for a detailed analysis of the three eligible investment categories and can help investors to further define targets and develop the most optimal strategic investment settings.
Commenting on the launch of the program Stafford’s CEO Angus Whiteley said: “This program demonstrates our unwavering commitment to driving transformative change and leveraging the power of private equity as a catalyst for innovation and growth. As a committed member of the Net Zero Asset Managers Initiative, we believe that addressing the challenges of climate change is paramount in today’s world. Our strategic focus on decarbonization strategies reflects not just a business decision, but also a conscious decision to systematically push decarbonization efforts into the private equity asset class.
With over 20 years of experience working with specialist managers in the sector on sustainability investing and ESG integration, coupled with a proven track record of delivering a 17.8% net IRR on realized co-investments, Stafford is uniquely positioned to guide our clients on this critical pathway to a more sustainable and prosperous future.”
Commenting further, Stafford Capital Private Equity Partner Jesse De Klerk said: “This is a great opportunity for us to closely work with our private equity clients to support them and their portfolio companies to realistically achieve their decarbonization targets. Through this program, we will be able to help our clients to develop the right investment strategy, set targets, and take action to achieve real decarbonization.
”By partnering with Stafford Capital Partners, investors can align their portfolios with sustainability objectives, drive impactful change, and capitalise on the evolving energy landscape”.
Media enquiries
Sean Palmer
Director
Camarco
07591 760844
sean.palmer@camarco.co.uk
Amrith Uppuluri
Associate Director
Camarco
07763 083058
amrith.uppuluri@camarco.co.uk
About Stafford Capital Partners
Stafford is an independent private markets investment and advisory firm with USD 7.9 billion in assets under management and advice for more than 150 institutional clients worldwide. Founded in 2000, Stafford has a global team of 85+ professionals investing in infrastructure, timberland & agriculture, and sustainable private equity through secondaries, primaries, and co-investments. Stafford has been a UN PRI signatory since 2010 and has committed to the Net Zero Asset Managers initiative. It puts sustainability at the centre of its investment process and implements a well-defined ESG program across all strategies. In the UK, Stafford is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 225586).
This is a marketing communication.
This release neither constitutes an offer to sell nor a solicitation to invest in any of Stafford’s funds. It is for information purposes only and is not a recommendation. It does not constitute an offer to sell or a solicitation to invest in any jurisdiction where the offer or sale would be prohibited or to any person not meeting the required investor criteria.