Star Capital has always believed that the management of environmental, social and governance (ESG) factors within its investment process can positively impact risk control and performance, create value in the companies in which it invests and for the stakeholders involved, while increasing the transparency and reputation of Fund subscribers.
Star Capital believes that the adoption of ESG criteria represents a useful tool for measuring the quality of management and consider these determining factors during the different phases of the investment process, from initial evaluation to disinvestment.
We pay attention to the environmental performance of the companies in which we invest.
Compliance with environmental laws and regulations and the responsible use of natural resources are considered crucial aspects for the responsible management of companies.
We pay attention to the social impact by creating a virtuous relationship with local communities.
We guarantee respect for human and workers rights regardless of sex, gender or religion.
We ensure that companies have an adequate corporate structure, paying particular attention to the functioning of the board of directors as well as the presence of independent directors.
We ensure that decision-making processes are linear, accountable and transparent.
Star Capital manages four Alternative Investment Funds (AIFs) classified in accordance with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 (“SFDR Regulation”).
Star Bridge Social Responsible Fund, Star III Private Equity Fund, and Star IV Private Equity Fund are classified under Article 6 of the SFDR Regulation; Star V Private Equity Fund is classified under Article 8 of the SFDR Regulation.
Sustainability risk refers to "an environmental, social, or governance event or condition which, if it occurs, could cause a material actual or potential negative impact on the value of the investment." Sustainability risks are risks that, if they materialize, could have a significant negative impact on the value of the Funds' portfolios. Therefore, Star Capital integrates ESG factors, including climate-related aspects, into the various stages of the investment process.
The integration of these aspects is governed by dedicated ESG policies (with reference to Star IV and Star V). The selection process includes a preliminary assessment of the investment opportunity, taking into account the exclusion criteria established in the AIF regulations, aimed at verifying the existence of the minimum conditions – Including the ESG profile – necessary to determine the AIF's interest in the opportunity. If such interest is confirmed, due diligence activities are carried out, including ESG due diligence. Once the transaction is finalized, the portfolio company is subject to ongoing monitoring during the investment period, including ESG aspects, which are reported for each AIF in its respective annual ESG Report, made available to Subscribers.
With reference to Star V Private Equity Fund, classified under Article 8 of the SFDR Regulation, ESG activities take into account the higher level of depth required by the SFDR. For more details, please refer to the Fund’s ESG policy available in the dedicated documents section.
Principal adverse impacts (“PAIs”) refer to “the effects of investment decisions that result in negative impacts on sustainability factors.” Although Star Capital integrates ESG risks into its investment strategy, it does not currently fully implement a policy for considering the principal adverse impacts (PAIs) of investment decisions on sustainability factors. Indeed, with particular regard to the only AIF classified under Article 8 of the SFDR Regulation, the management company assesses the PAIs of investment decisions.
With reference to the only AIF classified under Article 8 of the SFDR Regulation, please refer to the document available in the dedicated documents section, which outlines the approach adopted by Star Capital to comply with the provisions of Article 10 of the SFDR Regulation.
Star V Private Equity Fund – Policy ESG
Star V Private Equity Fund – Disclosure ex Art. 3 e Art. 4
Star V Private Equity Fund – Disclosure ex Art. 10