Introduction and Overview
Carrick Capital Partners (“Carrick” or “the Firm”) is a leading provider of institutional equity capital for technology-oriented buyouts and growth opportunities in enterprise software and technology-enabled services. It is the Firm’s belief that effective management of environmental, social, and governance (“ESG”) issues creates long-term value in line with Carrick’s fiduciary responsibilities.
The purpose of this ESG Policy (“Policy”) is to (i) define Carrick’s guiding principles and approach to managing ESG factors in investments made through the Firm’s sponsored private investment funds (“Funds”) and (ii) create a framework for how Carrick prioritizes issues at the Firm level. In connection with its oversight of investment portfolio companies formed after the adoption of this Policy, the Firm will encourage portfolio companies to advance ESG considerations in a way that is appropriate for each portfolio company. Carrick recognizes the American Investment Council Guidelines for Responsible Investing as an aspirational set of principles which promote the development of strong business practices from initial deal sourcing to investment exit.
Carrick has established support for ESG initiatives at the most senior levels of the Firm and has established an internal committee which is responsible for the implementation of this Policy (“ESG Committee”). The ESG Committee is comprised of the following individuals, including the Firm’s most senior executives along with legal, client, and operational team representatives: Marc McMorris (Co-Chief Executive Officer & Co-head of the Investment Committee), Mitchell Slodowitz (Chief Financial Officer), Steve Unterberger (Managing Director and Chief Administrative Officer), and Phil Bussey (Senior Vice President). On an as needed basis, investment professionals and additional staff who are not members of the ESG Committee will be asked to observe and contribute to meetings of the ESG Committee to enhance the execution of this Policy. The ESG Policy will be reviewed by the ESG Committee periodically and updated as needed.
Carrick does not seek to exclude opportunities from its investable universe. As such, the Firm does not maintain an exclusionary list; rather, it evaluates the materiality of ESG factors on a transactional basis. ESG factors are raised , discussed, and considered alongside of other factors as part of the due diligence process and throughout ownership. Carrick has developed a formal ESG evaluation process which guides the Firm’s assessment of sustainability-related and societal impacts which may result from a potential investment and within active investments. From time to time, Carrick engages with third-party advisors to assess the ESG issues.
Carrick is committed to operating a successful and responsible investment program in the context of ESG considerations. In doing so, the investment program generates measurable data at each stage of the investment lifecycle including opportunity sourcing, pre-investment due diligence, and ongoing monitoring and reporting during ownership.
Ownership and Reporting
Carrick is committed to transparency with respect to its ESG initiatives and the Firm intends to monitor the performance of its investments relative to such ESG efforts. Carrick expects to regularly evaluate the status of its portfolio of investments with respect to ESG criteria implemented pursuant to this Policy.
Internal ESG Management
Carrick recognizes that it faces ESG risks within the course of its own operations in addition to those among its investments. The Firm aims to integrate ESG considerations into its workplace by creating an equal opportunity environment to develop a diverse group of talented investment professionals and staff. Carrick is adherent to policies which prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act and the Organization for Economic Cooperation and Development (“OECD”) Anti-Bribery Convention.
Internal management of ESG matters is achieved through policies and procedures, employee education, internal audit, and outreach initiatives. Employees of Carrick are encouraged to ask questions and raise concerns about this Policy at any time. The Firm’s ESG Committee sources recommendations from employees related to the Firm’s community involvement, including by supporting charitable organizations and employee matching programs, offering internships, and sponsoring volunteer days.