ESG Deal of the Year

ARCHIMED (Vita Health Group)

ARCHIMED was able to return the MED I investors 4.2x MOIC and an IRR of 23% on the Vita Health Group (VHG) investment with a strategic exit to Spire Group. ARCHIMED was able to position the company as a leader in ESG. VHG is now committed to environmental sustainability, diversity, equity, inclusion (DEI), and overall sustainability. Their environmental goals include achieving Net Zero emissions by 2050, in line with the UK's Climate Change Act, and aligning with the NHS's net-zero supply chain by 2045. VHG aims to reduce Scope 1 and 2 emissions per £Million turnover by 60% by 2030 and Scope 1, 2, and 3 emissions by 80% by 2045. 

In DEI, VHG has adopted an Equality and Diversity Policy, monitors DEI KPIs, and aligns with NHS standards. They support disabled employees, making up 15% of the workforce, and are recognized under the Disability Confident and Mindful Employer schemes. Initiatives include diversity training, bias-free recruitment, and an affirmative action plan for female candidates in management. An independent Speak Up Team facilitates employee issue reporting. 

VHG’s sustainability efforts are guided by a Sustainability Working Group and an Action Plan. They emphasize risk management, business ethics, and supplier sustainability. They aim for carbon neutrality by 2050 through various initiatives, including waste management and travel policies. VHG's sustainability performance is benchmarked against peers, showing advanced performance and strong commitments.

Bridges Fund Management (Agilitas)

For over 20 years, Bridges Fund Management has invested exclusively in businesses that support the transition to a more inclusive and sustainable economy. ESG and impact is fundamental to each stage of Bridges’ investment process: from origination, to assessment, value creation, to exit. 

In January 2024, Bridges’ specialist patient capital vehicle, Bridges Evergreen, successfully completed the sale of AgilityEco to M Group Services, having first invested in the business in November 2019. 

Continuously rising fuel costs, inefficient housing stock and rising household debt means a shocking 10% of UK households live in fuel poverty. In parallel, the country has some of the oldest and least efficient housing stock in Europe; the sector already accounts for about one-sixth of all UK carbon emissions. 

AgilityEco tackles these problems by introducing energy efficiency measures such as better-quality insulation and boilers into underserved homes. Along with ensuring significant fuel cost savings for households, this also helps to reduce reliance on fossil fuels and support the transition to a lower-carbon economy. 

In 2022/2023 alone, AgilityEco supported 36,000+ UK households with energy efficiency measures that will save over £2,600 per home on lifetime energy bills – averting an outstanding 113,000 tonnes of CO2 emissions.

Exponent (Meadow)

Established in 2004 with a presence in London, Dublin and Amsterdam, Exponent is a leading private equity firm investing in companies headquartered across Europe (UK, Ireland, Benelux and Nordics). Exponent has a distinctive approach, central to which is identifying the potential in corporate-, family- or founder-owned businesses with enterprise values between €150-500 million. Exponent has raised more than €3 billion to date and worked with over 40 businesses to consolidate their strength, accelerate their growth and create lasting value. 

Exponent takes responsible investing seriously, considering ESG factors at all stages of the deal cycle. Its investment team seeks to embed greater awareness and action on ESG issues into the operations of all its portfolio companies where, as board members, it is able to drive real change. The Firm is also committed to supporting its portfolio companies on their ESG journeys by helping them build a solid foundation with robust governance structures. Exponent helps them identify and establish best practices by addressing key ESG themes and legislation, whilst ultimately challenging them to set targets and goals to demonstrate ESG leadership. Meadow, a leader in sustainable dairy, confectionary, and plant-based ingredients, is a prime example of how Exponent works closely together with its portfolio companies to drive sustainability.

Foresight Group (ABL Health)

Foresight’s regional private equity strategy is focused on supporting underserved markets across the UK and enabling financial inclusion. This strategy targets an evident funding gap and supports SMEs at different stages of development, often in regions characterised by low rates of successful scale-up for small companies and high rates of unemployment. 

Foresight’s approach to SME investing is underpinned by five ESG principles: awareness, environmental, social engagement, governance and third-party interactions. These are systematically applied throughout the investment lifecycle. ESG is included on monthly board agendas as standard and, on exit, an ESG framework is agreed, helping to ensure that subsequent owners will carry forward an ESG focus. 

Foresight’s SME investment processes are tailored for regional investing. Its regional investment funds display strong commercial and ESG metrics. Foresight’s regional funds have created over 2,800 high-quality sustainable jobs.

Voting Closed

To find out who won, book a table at the Mergermarket British Private Equity Awards on 01 October 2024, by contacting Chris Coe.