Apex to provide ESG ratings and advisory to UK private equity fund

Investment into environmental, social and governance (ESG) unit wins Apex a UK private equity mandate ahead of incoming regulation.

By Jonathan Watkins

Apex Group has been appointed by UK private equity fund, Elysian Capital, to provide full environmental, social and governance (ESG) ratings and advisory services as the administrator reaps the rewards of investment into the service. 

Through the agreement, Apex will ensure consistent standards of monitoring and reporting of ESG matters across Elysian Capital’s underlying portfolio. These services include collection of over 300 ESG data points, quantitative scoring and reporting, as well as benchmarking against best-in-class ESG standards, sector peers and UN SDGs.

In addition, Apex said its ESG Gap Analysis will provides Elysian Capital with tailored advice on how to drive ESG performance, aligned to sector best practice, leading ESG standards and UN Sustainable Development Goals.

The partnership comes just weeks before the introduction of the EU’s Sustainable Finance Disclosure Regulation requiring asset managers to incorporate sustainability risks across their investment process, product governance and wider internal processes and systems.

We are delighted to be working with Elysian Capital to deliver a high quality, independent ESG service tailored to meet the specific needs of private markets,” said Will Chignell, chief commercial officer, Apex ESG Ratings & Advisory.

Quality ESG data capture, analysis and reporting is now a critical component of risk mitigation and ensuring sustainable returns for the private equity industry and its and their investors. We look forward to continuing to work with Elysian Capital to provide a service that influences significant change, driving capital flows toward ESG performance and better companies.”

The services provided by Apex will enable Elysian Capital to accurately identify reputational risks, track ESG progression over time, and to ensure the integration of responsible investing principles.

Apex Group has invested heavily in its ESG services in recent years, earning it recognition at Global Custodian’s Industry Leaders awards in November 2020 through an innovation award.

Data partnerships, portals and insights have been at the forefront of the organisation’s mission and the latest mandate shows the growing focus on ESG from private markets funds.

“Elysian Capital engaged Apex ESG as the market leader in delivering an accurate and independent ESG rating, reporting and benchmarking service for our portfolio,” said Tom Falcon, operating partner, Elysian Capital. We have been really impressed by Apex’s client service and in-depth, practical analysis that will help us and our portfolio companies drive significant ESG improvements.”