Pioneering ESG ratchets in private debt - Tikehau Capital

In conversation with Laure Villepelet, Head of ESG.

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... The crisis provoked by the pandemic has brought ESG considerations into the spotlight. It is now accepted that environmental footprint, human capital management and business ethics need to be considered at the level of a company’s products and services, operations and supply chain because they have an economic impact.

However, in an evolving landscape of multiple ESG labels and ‘best practice’ standards, managers need to demonstrate ESG commitments represent more than ‘greenwashing’.

In this short Q&A, Tikehau Capital focus on one specific area which is the adoption of incentives for borrowers – a downward margin ratchet in this case.

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