SFDR Alignment
European Private Markets Manager
Client Overview
We worked with a European private markets GP to build a tailored SFDR framework in preparation for the launch of its Article 8 fund. The GP sought an advisor with experience in designing and operationalising SFDR frameworks ahead of its upcoming fundraise.
Objective
The firm came to Danesmead Advisory seeking end-to-end support – from developing its responsible investment strategy through to completing annual periodic reporting for its soon-to-be Article 8 SFDR fund. Beyond the individual steps involved, the client wanted confidence that its SFDR framework was robust, integrated and credible in front of LPs and regulators.
Key Actions
We worked closely with the investment team to define the environmental and social characteristics the fund would promote, providing the organisation with a clear and actionable responsible investment strategy to achieve its stated ambition.
A tailored sustainability assessment tool was built to evaluate companies pre‑investment and throughout the holding period to ensure alignment with the characteristics promoted. The assessment included a distinct good governance test, providing a pass/fail result across the four pillars of sound management, employee relations, remuneration and tax compliance.
We developed the binding elements and embedded them into the existing investment process, ensuring disciplined, consistent and commercially streamlined application. We also defined the sustainability indicators required to evidence the promotion of the characteristics across the portfolio.
A monitoring template was built with binding elements checklist to centralise investment level data, making it easy to track compliance and report.
Danesmead drafted the full suite of SFDR disclosures including the Pre‑Contractual Disclosure, Website Disclosure and internal Policy, providing the client with a coherent set of documents that underpin and evidence the Article 8 strategy.
Results
High-quality, consistent disclosures that required minimal edits from the client and no comments from the regulator.
Our client has a disciplined and transparent investment process that ensures investments entering the fund meet all required criteria and align with the characteristics promoted by the fund.
Monitoring tools that consolidate responsible investment information in one place, creating a clear and auditable trail to support annual periodic SFDR reporting.
Moving forward, Danesmead’s ongoing SFDR support will reduce the reporting burden with us drafting annual periodic reports and analysing data to evidence alignment with the environmental and social characteristics promoted.