Responsible Investing

Acting in the best interests of investors.
Promoting best practices among sponsors and borrowers.

The Antares ESG Policy

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Last Update: March 2022

Antares believes that ESG assessment is central to making sound credit decisions. As ESG considerations have evolved, so have we — ensuring we are more deliberate in how we define it, how we track it, and how we ensure that a strong understanding of ESG and its importance is ingrained in our culture.

Timothy G. Lyne
Chief Executive Officer

In-depth, fundamental analysis is at the heart of our investment philosophy. And ESG factors are integrated into the framework of our investment process.

Keeping Score

We not only maintain high ethical standards for ourselves and sponsors, but also for the middle market companies we invest in. Which is why our research for each potential borrower is guided by the Antares ESG Scorecard, designed to elicit the issuer’s strengths and weaknesses with respect to ESG considerations.

"E" Factors

Climate change, air quality, GHG emissions, waste management, resource conservation and energy efficiency

"S" Factors

Human rights and community relations, privacy, health and safety, labor practices, supply chain continuity, product safety, innovation, and diversity, equity and inclusion

"G" Factors

Transparency of management, cyber security and internal controls, and business ethics

In the Spotlight

Portfolio companies we invest in lead meaningful change across many sectors, bring innovation to the mid-market, and illustrate the value creation and growth associated with ESG.

Our Insights

ESG principles are deeply embedded in how we do business at Antares and how we measure and deliver value. We believe investing in a holistic, robust ESG strategy directly correlates with value creation and growth.

Working with Purpose

At Antares, we work with purpose—championing middle market growth so our people, partners and communities achieve their full potential. This purpose is at the core of our continuous focus on building a more diverse workforce and creating a culture of belonging that positively impacts our business and our communities.

Learn more about what we’re doing to promote diversity, equity and inclusion and community involvement here.

Robust Screening Ensures Alignment

Antares has a robust screening process that includes initial negative screening – i.e. declining to invest in companies or industries that are not aligned with our purpose, mission and values. In the case of a provider of behavioral treatments in clinic and home settings, we discovered a history of prior child abuse incidents through an adverse media check. Additionally, there was a prior known government investigation which stemmed from complaints from former employees related to improper billing practices. Despite the fact that the Company had shown evidence of certain improvements in business practices and the dismissal of some bad actors involved in the prior incidents, it was determined that business practices were still behind industry standards of care. As such, we chose not to invest in the deal.

Cybersecurity – A Critical Risk Requiring Ongoing Monitoring

Antares engages in thorough due diligence across a host of ESG factors leveraging SASB materiality guidance and deal team expertise given the specifics of the borrower. As an example, during due diligence for a potential investment, we uncovered prior cybersecurity breaches that had compromised material intellectual property (“IP”) and ultimately led to a bankruptcy.

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Good Governance Requires Rigorous Internal Controls

An existing portfolio company in the market intelligence and data collection industry was acquiring a target that would diversify its product offering. When presenting the opportunity to the lending group, the Sponsor disclosed an embezzlement issue related to a previous employee of the target who had been terminated one year prior to the acquisition and related pending litigation against the employee.

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No Consideration of Sustainability Adverse Impacts

Antares does not consider the adverse impacts of its investment decisions on sustainability factors within the meaning of Article 4(1)(a) of the Sustainable Finance Disclosure Regulation (Regulation (EU) 2019/2088) (as amended, the “SFDR”) at this time. The SFDR defines sustainability factors as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery. Antares fully supports the SFDR’s policy objective of providing greater transparency to investors and the market in relation to the adverse impacts investment decisions may have on sustainability factors. However, Antares currently does not consider adverse impacts because, among other reasons, the legislation setting out the principal adverse impacts and disclosure templates has not yet been finalized and investment-level data is not readily available in a consistent format. As a result, it is not possible for Antares to make a meaningful assessment of the principal adverse impacts (if any) of its investment decisions on sustainability factors. This approach will be reviewed at least annually.

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