MaxCap’s Approach to Responsible Investment
Responsible investment is gaining momentum in the private investment markets globally and is rapidly becoming the expected minimum standard of good investment practice in Australia. MaxCap’s approach to Responsible Investment involves the integration of Environmental, Social and Governance factors across its business.
MaxCap’s approach to Responsible Investment is evolving in response to changing market expectations and broader societal values. The investment and asset management industry is adapting to address a number of global trends which we expect will accelerate in the short to medium term including –
- Institutional investor demand for responsible investment practices and sustainable finance products;
- Increased regulatory focus on ESG considerations, particularly climate;
- Climate change transition risk which is already affecting asset valuations; and
- The rapid decarbonisation of the economy across most industries.
Whilst applying a value to ESG risk-related returns in private debt is challenging, a core benefit of ESG integration is the sharp focus on risk assessment at the point of investment origination.
MaxCap considers that the integration of ESG into our operations and investment activities is a natural extension of our disciplined approach to risk management and is consistent with our central mission of delivering superior risk-adjusted returns to investors. Since establishment, we have maintained a distinguished track record of returning 100% of investor capital and interest with zero losses.
MaxCap operates with strong corporate values and demonstrates its commitment to ESG principles in its operations and engagement with all stakeholders, including staff, investors and suppliers.