Social Impact Investing

Social Impact Investing*

20+ Years of Positive Investment Impact in Minority, Veteran or Women-Owned or Controlled + Low-Moderate Income Based Businesses

*As defined by the U.S. Small Business Administration (“SBA”). “Social impact” represents investments made into either companies headquartered in low- to moderate-income areas (LMI), or in companies that are woman- and/or minority and/or veteran-owned and/or operated. Includes businesses with minority, women, or veterans in CEO roles.


Responsible Investment Policy Overview

Capitala Group has been providing capital to lower middle-market companies throughout North America for over twenty years. We believe that a thorough understanding of the environmental, social and governance (ESG) implications of the investments we make is vital to creating value and generating superior risk-adjusted returns for our investors. We integrate ESG considerations into our investment management processes and ownership practices in the pursuit of enhanced financial performance.

Responsible Investing Policy in Practice

Our policy forms one aspect of how we seek to meet our fiduciary duties to clients. It also guides our underwriting, portfolio management, and compliance teams when they engage with ESG issues. This policy is approved by our senior management team but is owned on a day-to-day basis by our Capitala Responsible Investing Committee. This team comprises senior representatives from our underwriting, portfolio management, compliance, and investor relations teams. The group meets regularly to discuss ESG trends and discuss how Capitala can best incorporate this information into our investment process.

Due Diligence and Portfolio Monitoring

Capitala’s investment professionals assess ESG-related risks throughout the due diligence process of each transaction. Through fundamental analysis, we seek to gain a comprehensive understanding of the factors that influence the sustainability of the investments we make. Our investment professionals evaluate ESG factors along with a range of other potential risks and opportunities that may impact companies.

In addition to the thorough in-house analysis done by our investment professionals to evaluate ESG risks, Capitala has access to third party consultants that can provide a deeper level of evaluation into company-specific ESG data.

After each investment, our portfolio team continues to monitor each portfolio company to ensure that an investment’s ESG risk profile remains consistent with our original underwriting thesis.

Capitala Commitment

Responsible investing has been a core value of Capitala’s investment strategy since its founding in 1998. For over twenty years, we have been investing in lower middle market companies with the commitment to consider how our decisions may impact broader communities in which we and our partners have a shared stake. We consider ESG-related issues an important part of this commitment, and we will continue to incorporate ESG criteria into our investment process, as well as provide transparency to our stakeholders as it relates to ESG issues.