Responsible Investing

At Capital Investment Fund Abu Dhabi, we take our commitment to environmental, social and corporate governance (ESG) principles very seriously. Those principles are adopted across all investment decisions and throughout our business.

Our Environmental, Social and Governance (ESG) Commitment and Approach

Capital Investment Fund Abu Dhabi believes that ESG factors positively contribute to investment performance, as well as contributing to help build a more stable, sustainable and inclusive global economy. By incorporating ESG criteria into our investment decision making and investment practices we can influence the companies we invest in to improve their performance. Our approach means that we actively seek opportunities to create long-term, sustainable value for both ourselves and our investors.

As part of our commitment to sustainable investment, Capital Investment Fund Abu Dhabi Private Debt has adopted the International Finance Corporation's (IFC) Environmental and Social Management System (ESMS) and Integrity Management System (IMS) guidelines which are the main components of the IFC Sustainability Framework. The ESMS and IMS are recognized globally as best practice benchmarks for environmental and social risk management. These frameworks allow us to promote sound environmental and social practices, encourage transparency and accountability, and contribute to positive development impacts within our portfolio companies.

In addition to this, Capital Investment Fund Abu Dhabi has implemented a robust governance framework based on Dubai International Financial Centre (DIFC) and Dubai Financial Services Authority (DFSA) requirements.

Capital Investment Fund Abu Dhabi employs a holistic, disciplined, value-focused and credit-oriented approach when evaluating each investment opportunity, adhering to a rigorous and risk-averse investment process that includes thorough and detailed due diligence :

  1. Investment Compliance: Know Your Client (KYC), Anti-Money Laundering (AML) and Counter Terrorist Financing (CFT) checks are conducted and documented prior to any investment and also monitored throughout the life of the investment.
  2. Anti-corruption: Capital Investment Fund Abu Dhabi follows the provisions of the World Bank Group anti corruption guidelines and policies.
  3. Exclusion Lists: All investments are subject to a screening against the IFC exclusion list and must comply with the relevant IFC performance standards on environmental and social sustainability.
  4. E&S policies and processes framework: Thorough Environmental and Social Due Diligence (ESDD) is based on the Fund's internal ESMS policies and IFC's Performance Standards.
Our ESMS Framework

Private Debt established it's ESMS Framework on 18 December 2012 in order to integrate environmental and social risk management standards into it's business processes utilizing the IFC's Performance Standards. The ESMS Framework sets out the actions and procedures to conduct environmental and social due diligence prior to investments and to ensure an adequate supervision of the investee companies in order to mitigate potential risks during the life of those investments.

In line with these procedures, Capital Investment Fund Abu Dhabi conducts on-site due diligence on its existing portfolio companies and potential investee companies, and categorizes those investee companies in the appropriate risk categories. Capital Investment Fund Abu Dhabi maintains close coordination with the IFC during the environmental and social due diligence processes and proactively works towards identifying potential risks at the preliminary stages of its investment process.

Capital Investment Fund Abu Dhabi will also incorporate covenants that are tailored to the business activity of each investee company into each loan agreement to maintain ongoing compliance with ESMS requirements. Capital Investment Fund Abu Dhabi receives ESMS reporting from each of its portfolio companies.

To access the IFC's Performance Standards on environmental and social sustainability.

Our IMS Framework

Private Debt established its IMS Framework on 20 April 2017 to further enhance our risk mitigation processes, reflecting the increasing importance of and evolution in risk management. The IMS forms part of our commitment to sustainable investing and aims to identify, assess and manage all integrity risks of the Private Debt Funds, in compliance with the IFC's Integrity Due Diligence requirements.