Responsible investments that realise impact, alongside financial return
Gilde Healthcare Partners is a specialized European healthcare investor managing funds across two strategies: 1) venture and growth capital, investing in startups and companies in the health tech and therapeutics space; and 2) private equity: investing in profitable European healthcare companies.
While realising outstanding financial returns, Gilde’s investment focus has always been geared towards creating social impact with its thematic focus on healthcare. Moreover, Gilde underwrites the importance of investing responsibly, by taking Environmental, Social and Governance (ESG) factors into account in investment decisions. While both ESG and impact were part of Gilde’s DNA already, the organisation lacked a structure and methodology to consistently assess and report ESG and impact, which is increasingly required to meet growing LP demands, mitigate risks, and drive benefits for people and planet.
Addressing ESG and impact from due diligence to exit
We supported Gilde in implementing an approach in which ESG and impact are addressed throughout the entire investment process: from screening ESG risks and assessing ESG factors in the due diligence phase, to actively engaging with portfolio companies to improve ESG performance post-investment, to regular monitoring and reporting of ESG and impact until exit. In support of this process we developed a responsible investment policy, an indicator framework and questionnaire linked to material ESG topics, as well as an impact assessment methodology that includes health economics calculations.
Meeting LP demands and improving performance
Considering ESG factors in investment processes are increasingly becoming ‘mainstream’. Having a clear ESG policy as well as assessment framework helps Gilde raise funds, mitigate risks, and communicate ESG performance to LPs and other stakeholders. Being able to demonstrate impact on top of ESG performance provides an additional advantage in stakeholder and LP relations, as well as a tool to identify and support those companies and products that hold the most potential in terms of impact, innovation, and contribution to Sustainable Development Goal (SDG) 3: good health and well being.