Superhero Capital aims to maximize returns to its funds’ investors by selecting the most promising investment opportunities and by developing the funds’ portfolio companies. In addition to their impact factor, we believe that environmental, social and governance (ESG) issues can have the potential to increase returns. Consequently, ESG issues play an important role in our investment process. We consider the potential environmental impact of our portfolio companies’ activities as well as their social responsibility and corporate governance across all stages of our investment process.
Selection and investment decision phase
ESG issues such as sustainability, corporate citizenship and governance are part of our selection process and play an important role in investment decisions. Strong performance by a company from an ESG perspective increases the likelihood of an investment. On the other hand, companies that fail to meet minimum ESG expectations or are engaged in business operations in controversial industries will not be considered for investment.
Ownership and value creation phase
After making an investment, we work with our portfolio companies in order ensure proper business practices from an ESG perspective. We encourage our portfolio companies to develop their own ESG policies in light of their own business environment and values. Our approach and expectations vary depending on each portfolio company’s sector, geography, business model and other factors.
When exiting portfolio companies, we evaluate the potential ESG impacts of the exit and consider issues such as the portfolio company’s expected future development and the fair treatment of its stakeholders. Sometimes portfolio companies end up closing down their operations. In such situations we focus on ensuring that relationships with different stakeholders (customers, employees, lenders, partners, etc.) are concluded in a responsible manner.