Sustainability

We Stand for Sustainable Investments
and Good Entrepreneurship
Sustainability
Sustainable
Corporate Management

The topic of ESG – Environmental Social Governance – is becoming increasingly important for the society, investors and regulators. We promote out of conviction social and environmental initiatives among our portfolio companies, thereby creating trust, values and a competitive advantage. Together for sustainable and successful entrepreneurship.

Responsible Investment Strategy

Beyond Capital Partners considers sustainability risks and value creation potential at every step of the investment process, from the selection of potential companies, due diligence and investment decision-making to all activities within the holding period and potential divestiture of one of our portfolio companies.

An essential part of our personal and professional understanding and values of doing good business and generating valuable returns is to participate in the sustainable development of our environment, our society and economy. In particular, but not conclusively, the following areas are close to our hearts:

  • Good Entrepreneurship – Continuous development and implementation of good practice principles, policies and risk frameworks to support our major value of good entrepreneurship
  • Climate Change Mitigation
  • Comprehensive and Valuable Education and Support
  • Diversity & Inclusion
  • Well-Being and Mental Health

Beyond Capital Partners
Responsible Investment Strategy

To act in accordance with our values, we committed ourselves to adopt and implement the UN-supported principles for responsible investing (PRI) and to promote the following SDGs (UN Sustainable Development Goals) by advising and supporting our portfolio companies on initiatives and measures, that positively influences the following goals:

Through this, we want to ensure that the 3rd party capital provided to us is invested sustainably and with the greatest possible prudence and has a positive impact on the environment and society through our investments.

Furthermore, Beyond Capital Partners is a signatory of PRI (Principles for Responsible Investment), a participant of UN Global Compact, an active supporter of Level 20 and a member of BVK (German Private Equity and Venture Capital Association e.V.).

Integration of Sustainability Risks into Investment Decision-Making Processes

Governance

Key elements of Beyond Capital Partners’ ESG Governance:
Beyond Capital Partner has made key staff members responsible/accountable for ESG issues. Overall ESG responsibility lies at Managing Partner level, ESG supervision and development resides with the Head of ESG.
Beyond Capital Partners provides ESG training to all members of the investment team. Furthermore, the Managing Partners and Head of ESG are required to regularly undergo further education and participate in industry-specific discussions and conferences as well as offers from the cooperation partners (PRI, Level20, etc.) to ensure that Beyond Capital Partners is always up to date and can pass this on to the investment teams.
Beyond Capital Partners has developed a sophisticated ESG Policy which is being enhanced and checked at regular intervals for up-to-dateness, approved on a Managing Partner level and shared among all team members on a regular basis.
ESG due diligence (via third-party providers) is a mandatory part of each Investment Committee meeting.
Beyond Capital Partners, in accordance with the requirements of the SFDR, builds a comprehensive ESG performance indicator system for Beyond Capital Partners and all relevant portfolio companies in order to ensure continuous measurement and targeting of environmental and social goals.

ESG along the Investment Cycle*

Principal Adverse Impacts Statement (“PAI”)

The Sustainable Finance Disclosure Regulation (“SFDR”) requires Beyond Capital Partners to make a “comply or explain” decision whether to consider the principal adverse impacts (“PAIs”) of its investment decisions on sustainability factors, in accordance with a specific regime outlined in SFDR. Beyond Capital Partners has opted not to comply with that regime, both generally and in relation to the Funds I and II. 

For Fund III, that is issued as a SFDR Art. 8 Product, Beyond Capital Partners committed itself to consider the principal adverse impacts (PAI) of its investment decisions on sustainability factors, as outlined in SFDR.

Beyond Capital Partners has carefully evaluated the requirements of the PAI regime in Article 4 of the SFDR, and in the draft Regulatory Technical Standards which were published in April 2020 (the “PAI regime”). Beyond Capital Partners is supportive of the policy aims of the PAI regime, to improve transparency to clients, investors and the market, as to how financial market participants integrate consideration of the adverse impacts of investment decisions on sustainability factors. However, Beyond Capital Partners is concerned about the lack of readily available data to comply with many of the reporting requirements of the PAI regime in its Funds I and II, as Beyond Capital Partners believes that companies and market data providers are not yet ready to make available all necessary data for the PAI regime. However, Beyond Capital Partners is being proactive and building a comprehensive ESG reporting systems that includes all relevant PAI indicators to meet the PAI requirements as Fund III begins.

Notwithstanding Beyond Capital Partners’ decision not to comply with the PAI regime for Funds I and II, Beyond Capital Partners has implemented positive ESG-related initiatives and policies, as part of its overall commitment to ESG matters, as summarized above. For the avoidance of doubt, none of the information is intended to create the impression that Beyond Capital Partners complies with the PAI regime for Funds I and II.

Remuneration Policy

Beyond Capital Partners (along with its subsidiaries and controlled affiliates) has established a remuneration policy (the “Policy”) applicable to all Beyond Capital Partners entities. The Policy is developed, approved, implemented, and monitored by the Managing Partners. The Policy applies to all employees of Beyond Capital Partners, save for limited exceptions.

The Policy has been developed with the aim of supporting Beyond Capital Partners’ business strategy, corporate values, and long‐term interests, including by facilitating the identification, assessment and management of sustainability risks when determining individual remuneration packages. The key principles of the Policy include fostering appropriate risk culture (including with respect to the management of actual and potential conflicts of interest) and compliance with applicable law and regulation.

The performance management and rewards framework envisioned by the Policy has been designed to promote effective risk management, including in particular by:

  • Ensuring that assessment of performance takes full account of adherence to risk management requirements, covering all relevant types of current and future risks, including sustainability risks.

  • Implementing deferral arrangements using co‐investment and carried interest arrangements for senior personnel, facilitating alignment of interests between staff‐members and third-party investors. If the value of the relevant underlying investment portfolio should decrease (whether arising because of a sustainability risk or otherwise), the value of the employee’s holdings will be reduced accordingly.

  • Providing for reduction of variable remuneration awards – if applicable – to senior personnel in certain circumstances, such as in the event that the entity in which the relevant employee works suffers a significant failure of risk management or experiences a significant downturn in its financial performance (as determined in the sole discretion of Beyond Capital Partners), including in connection with a sustainability risk concerning an investment.
Seals of our Portfolio Companies
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"Even after 20 years, our desire for something new has not yet been satisfied. Together with Beyond Capital Partners, we want to reach the next level, bring our agency forward, open up new target groups and locations and attract new employees.”

Alexander Osterwald,
Founder and Managing Director von ECD International

Alexander Osterwald,
Founder and Managing Director von ECD International

"For us, Beyond Capital Partners is the ideal partner, as we are pursuing the same vision – to become one of Europe's leading experiential marketing agencies"

Jörn Pfotenhauer,
Founder and Managing Director von ECD International

Jörn Pfotenhauer,
Founder and Managing Director von ECD International

Portfolio

ECD International Holding GmbH

Purchase: August 2023

Key Figures at the Time of Acquisition

EUR 10-15 Mio.
Turnover

20 %
EBITDA

25
Employees

Value Creation Levers

Operational Improvements
  • Expansion of digital skills (apps, AI tools)
  • Process optimization / efficiency enhancement
Organic Growth
  • Hiring new employees
  • Attracting new customers
  • Cross-selling potential with existing customers
  • Opening of new lcoations: national and international expansion
  • Diversification of service portfolio
  • Increasing brand awareness
Inorganic Growth
  • Acquisition of specialist agencies