Responsibility

Long-term Growth. Sustainable Investment.

At the core of the economy lies the Mittelstand — and that’s where we invest. It’s good for the region and guided by a clear purpose. We take responsibility: for our investors’ funds, for the legacy of entrepreneurs, and for people, the environment, employment, and society as a whole. Behind this is a clear inner attitude that sharpens our view of the bigger picture and shapes our actions.

Mindset

As private equity professionals, we think and act as partners by conviction. We are committed to the continuation of business success stories, both professionally and personally. That's what we mean by mindset. We demonstrate this by being transparent partners at all times, acting reliably and keeping our word.

Values

Dynamic
The key to sustainable success in private equity is a positive working dynamic. We fuel it with commitment, ambition and passion. We are driven by the joy of entrepreneurship.
Confident
Always keeping the big picture in mind and thinking beyond conventional boundaries. In every project, with every commitment. This takes courage and a willingness to go above and beyond. We do so with confidence – and consistently deliver success.
Collaborative
Successful private equity collaborations are based on common goals. We define them in a trusting partnership with all parties stakeholder involved and support their implementation with all our strength and expertise.

Responsibility and ESG at Capiton

Responsible investment is part of our self-image.

Capiton acts with a high degree of integrity and a sense of responsibility – towards portfolio companies, employees, investors, partners and the environment.

Sustainability as an integral part of our actions:

We have been a signatory to the UN Principles for Responsible Investment (UN PRI) since 2019 and are guided by the ESG guidelines of leading industry associations such as Invest Europe and the BVK. Our own Responsible Investment Policy firmly anchors this claim in the investment process and in the active support of our portfolio companies.

Climate neutrality and climate protection:

In collaboration with ClimatePartner, we have recorded our greenhouse gas emissions with the aim of reducing them. Unavoidable emissions are offset. Capiton has therefore been climate-neutral since 2021. In doing so, we are supporting an international climate protection project and a complementary initiative in Germany – and making a contribution to the 17 UN Sustainable Development Goals (SDGs).

Promotion of diversity and inclusion:

Since 2022, we have been a sponsor of Level 20, a non-profit organization that aims to promote women in the private equity industry. We support Level 20’s five main initiatives: mentoring, networking, outreach, advocacy and research. In addition, we offer an exclusive scholarship for female applicants to the Master of Finance program at the Frankfurt School of Finance & Management. Further information

ESG in practice:

ESG criteria are an integral part of every step of our investment process. For new investments, we carry out comprehensive ESG due diligence together with a specialist ESG consultant to ensure that the target company meets our positive and negative criteria. The results flow directly into our investment decisions. We also actively support our portfolio companies in the further development of their sustainability factors during the holding phase. We conduct annual ESG reviews of our portfolio companies. The underlying principles are set out in Capiton’s Responsible Investment Policy, which we continue to develop on an ongoing basis.

Further information:

• Code of Conduct (PDF)

• Responsible Investment Policy (PDF)

Our Memberships & Sponsorings

Sustainability-related Disclosures

Entity Level

Product Level

Product-level disclosure for financial products referred to in Article 8 of Regulation (EU) 2019/2088 for the following funds managed by Capiton: Capiton VI Beteiligungs GmbH & Co. geschlossene Investment-KG, Unisono Parallel Beteiligungen VI GmbH & Co. geschlossene Investment-KG, capiton Quantum GmbH & Co. geschlossene Investment-KG, Unisono Quantum 1 GmbH & Co. geschlossene Investment-KG, Unisono Quantum 2 GmbH & Co. geschlossene Investment-KG.

(Update April 2023: Specification of the relevant funds managed by Capiton).

(Update May 2024: Adaptation of the headings in the product level section to Art. 24 Delegated Regulation (EU) 2022/1288).

Complaints Management

Capiton AG has implemented a complaint management system. It is important to Capiton AG to appropriately record and analyze complaints and to implement appropriate measures to resolve them. A complaint can be sent by post to Capiton AG (see address below) or by e-mail (compliance@capiton.com) to the Compliance Officer, stating the name, the special AIF concerned, the reason for the complaint and the contact details. The complainants will be informed by e-mail about the processing progress and the result of the processing.

Do you have any questions?
Your contact for this topic

Alexander Kretzer
Partner
T +49 30315 945 0E -> kretzer@capiton.com

Entity Level

(The first publication was on December 15, 2022. The dates of subsequent updates are noted in the relevant chapters.)

Transparency of sustainability risk policies  

capiton seeks to act with the highest level of integrity, taking a responsible approach when interacting with our portfolio companies, our advisors, our investors, local communities and the environment. The cornerstone of our business is to deliver superior risk adjusted net returns to our investors. They have entrusted us with funds to be managed over a considerable time horizon, and they expect that we use our influence as owners to protect and enhance the value of the companies we invest in.

We acknowledge that long-term financial sustainability is not only about financial dimensions, like avoiding excess leverage. It is also much about the quality of the management of portfolio companies and the integrity in the way they interact with their investors, employees, customers, central and local governments, other key stakeholders and the environment.

As part of our investment strategy, we also consider sustainability risks. These include environmental, social and governance (ESG) events or conditions, the occurrence of which could have an actual or potential material adverse effect on the value of the investment. We counter these risks with the following strategies, among others.

capiton respects and adheres to local environmental laws in the regions in which it operates. Before we invest in a company, we analyze – as far as possible and material – the environmental management, – compliance and the resource efficiency and the environmental impact. After an acquisition, capiton focuses on improving the environmental performance of our portfolio companies. We further acknowledge that climate change is one of the decisive challenges of our time. We therefore perform a dedicated climate-risk assessment for all our portfolio companies to analyze transitional and physical climate-related risks of their business. We strongly encourage that our portfolio companies should develop and implement their own environmental policy and climate management tools in accordance with capiton’s policy.

capiton strongly believes that the firm and its portfolio companies will only be successful if the workforce enjoys a good working environment. Accordingly, we analyze the social management, health and safety situation and the aspects of supply chain and engagement before we invest in a company and aim to improve ESG performance in this respect during the development phase. capiton aims to promote human rights practices in the portfolio companies it owns. We strongly encourage that all our portfolio companies should develop and implement their own Code of Conduct, in accordance with capiton’s Code of Conduct.

An essential part of capiton’s value creation model is the governance and management structure that is put in place for each portfolio company. Consequently, we analyze organization, implementation and control of governance as well as the stakeholder management and communication in the acquisition phase and plan to improve the ESG performance in this respect during the development phase. Supported by the advisory board, the management of each portfolio company is responsible for defining strategy and policy, and capiton expects this to include the setting of sound environmental, social and governance standards.

We take our obligations to all stakeholders in our portfolio companies and capiton AG seriously, and we believe that through operating in a responsible and transparent manner we are able to build stronger, more profitable entities. Our long-term perspective is core to our investment approach. Through partnership and transformation, we seek to create fundamentally better businesses that are competitive both locally and internationally. At capiton, we have developed a strong Code of Conduct and a Responsible Investment Policy (see also the Responsible Investment Policy in our section philosophy). The values and elements outlined therein are fully integrated with our investment processes. To underpin and further develop our responsible investment claim, we became a signatory to the United Nations Principles for Responsible Investment in 2019.

(Update June: Specification of sustainability risks and the pursuit of sustainability goals.)

Consideration of adverse impacts of investment decisions on sustainability factors 

Art. 4 SFDR provides for a framework aimed at achieving transparency with regard to any principle adverse impacts of investment decisions on sustainability factors. For this purpose, financial market participants such as capiton must disclose certain information (taking into account the Commission Delegated Regulation (EU) 2022/1288 (“RTS”) with regard to regulatory technical standards). For the reference period 1 January to 31 December 2023, capiton for the first time takes into account the principle adverse impacts of investment decisions on sustainability factors as provide for by the RTS. Previously, capiton was of the opinion that the information provided to it by the portfolio companies in relation to the investments is not sufficient to allow it to do so.

Statement on principal adverse impacts of investment decisions on sustainability factors of capiton AG of the reference period 1 January to 31 December 2024:

Pai statement capiton AG 2025 engl

(Update June 2023: Specification of the non-consideration of adverse impacts of investment decisions on sustainability factors.)

(Update July 2024: First-time consideration of principal adverse impacts of investment decisions on sustainability factors of capiton AG for the reference period 2023).

(Update May 2025: Update PAI Statement 2023.)

Transparency of remuneration policies in relation to the integration of sustainability risks 

The promotion of sustainable growth (including sustainability risks) within our portfolio companies as part of the value generating measures is a component of our remuneration policies for our deal team members since 2023.

(Update June 2023: Specification remuneration policy.)

(Update July 2024: Specification remuneration policy.)

(Update April 2025: Specification remuneration policy.)

Product level

Product-level disclosure for financial products referred to in Article 8 of Regulation (EU) 2019/2088 for the following funds managed by capiton: capiton VI  Beteiligungs GmbH & Co. geschlossene Investment-KG (LEI-Code: 5299007PXMFDTVDSN904), Unisono Parallel Beteiligungen VI GmbH & Co. geschlossene Investment-KG (LEI-Code: 391200U5S6PSJ2WMQY76), capiton Quantum GmbH & Co. geschlossene Investment-KG (LEI-Code: 529900QD2DJVKQUAXX33), Unisono Quantum 1 GmbH & Co. geschlossene Investment-KG (LEI-Code: 5299009L0TFHZ93QTS78), Unisono Quantum 2 GmbH & Co. geschlossene Investment-KG (LEI-Code: 529900HNO5SXAEYUJM02), capiton V AlphaPet Follow-on Investment GmbH & Co. geschlossene Investment-KG (LEI-Code: 391200YR0RQOWYVTEH93).

(Update April 2023: Specification of the relevant funds managed by capiton).

(Update Mai 2024: Adaptation of the headings in the product level section to Art. 24 Delegated Regulation (EU) 2022/1288).)

(Update April 2025: Update of the list of funds and inclusion of LEI-Codes).

Summary 

The Partnership’s investment strategy takes environmental and social risks into account in its investment decision-making process. The Partnership meets the requirement of Article 8 SFDR on the promotion of environmental or social characteristics by generally excluding investments in companies with certain business activities and evaluating and tracking (1) environmental, (2) social and (3) governance criteria throughout the development and holding phases. capiton also employs a dedicated risk assessment to identify and mitigate risks from climate change.

This strategy is implemented at the investment level in the form of a three-stage process. First, potential portfolio companies are reviewed and assessed in line with capiton’s overall ESG concept. In a second step, the business model of the portfolio company is reviewed for any adverse sustainability impacts. In a third step the results are summarized and evaluated in a special ESG section of the Investment Memorandum.

The outlined strategy above does not only form an integral part of the investment decision but is also part of the continuous management process in the development phase (ownership) of the portfolio companies.

100% of the investments promote these ESG characteristics.

(Update December 2022: the summary of the investment strategy has been reinserted in accordance with Art. 24 RTS).

No sustainable investment objective 

This financial product promotes environmental or social characteristics, but does not have as its objective sustainable investment.

Environmental or social characteristics of the financial product 

capiton’s products promote Environmental, Social and Governance twofold: First capiton generally excludes investment in companies that

  1. Have contributed to a systematic denial of basic human rights.
  2. Demonstrate a pattern of non-compliance with environmental regulations.
  3. Show a pattern of engaging in child labor or forced labor.
  4. Are primarily engaged in the manufacturing, sales, or marketing of weapons, artillery, and ammunition to be used in the act of war or military conflict, (collectively, “Military Products”) or components of the same, if the primary purpose of such component is to be included as a component in any Military Products.
  5. Have its principal business activities in the field of:
    • the manufacturing, distribution or sale of pornography.
    • the manufacturing, processing, distribution or sale of tobacco products.
    • the operation of casinos or other gambling facilities.
    • the extraction, refinement, sale and/or distribution, and power generation from coal.
    • the manufacturing, distribution or sale of distilled alcoholic beverages.
    • the mining or extraction of tar sands or oil sands.
    • the production, distribution and/or sale of palm oil, unless they are certified or committed to be certified by the Round Table on Sustainable Palm Oil, or a similar internationally recognized organization.
    • dealing in agricultural or marine derivatives.
    • research, development or manufacturing of technical application relating to electronic data programs or solutions which
      • aim specifically at:
        1. supporting any activity refer to under items above
        2. internet gambling and online casinos; or
        3. pornography

or

      • are intended to enable to illegally
        1. enter into electronic data networks; or
        2. download electronic data.

Second, the following criteria are evaluated in a due diligence process conducted in the development phase and then tracked throughout the holding phase (ownership).

Each of the nine categories above is based in turn on several sub-criteria which are evaluated during the ESG due diligence on the potential portfolio company in the acquisition phase.

As part of its ESG management, capiton considers the principal adverse impacts of investment decisions on sustainability factors (Principal Adverse Impact Indicators (PAI indicators)) and strives to improve these indicators.

Additional to these nine categories, capiton employs a dedicated climate risk assessment within its due diligence process to identify and mitigate (transitional and physical) risks from climate change. An example of this assessment including potential recommended actions can be seen below:

(Update July 2024: Specification of the environmental or social characteristics of the financial product with regard to the consideration of the PAI indicators).

Investment Strategy 

For each investment made by capiton, the above-mentioned ESG characteristics (including climate risk characteristics) are applied. The Investment Strategy used to attain those characteristics adheres to the following process:

The ESG characteristics including PAI indicators and climate risks are reviewed and assessed as part of the screening and due diligence process within the pre-investment phase in line with capiton’s overall ESG concept. Within the due diligence, each potential investment receives a materiality analysis in which the impacts of sustainability risks on the investment are assessed. The results of the due diligence are summarized and evaluated in a special ESG section of the Investment Memorandum. If ESG risks from the past and climate risks harbour excessive risks for the future, capiton will not make the investment.

Continual implementation of the strategy within the investment process:

The outlined strategy above does not only form an integral part of the investment decision but is also part of the continuous management process in the development phase (ownership) of the portfolio companies. It is the stated aim of capiton’s ESG concept for the portfolio companies to comply fully with capiton’s ESG standards (including climate risk management) at the time of divestment and have proven to have improved their ESG performance. We are convinced that this approach will add value and reduce risk in the long term with respect to our portfolio companies.

Binding elements for the investment selection:

As stated above, capiton employs the exclusion criteria outlined within the section “Environmental and Social Characteristics promoted by the financial product”. These exclusion criteria are binding. Moreover, as stated before, if the ESG due diligence exhibits excessive future-related risks, investments will not be made.

Policy to assess good governance practices of the investee company:

An essential part of capiton’s value creation model is the governance and management structure that is put in place for each portfolio company. An investment’s organization, implementation and control of governance are analyzed as well as the stakeholder management and communication in the acquisition phase. It is envisaged to improve the ESG performance in this respect during the development phase.

Supported by the advisory board, the management of each portfolio company is responsible for defining strategy and policy, and capiton expects this to include the setting of sound environmental, social and governance standards. Each company’s management is responsible for executing the strategy and running the daily operations of the company according to the policies established by the advisory board / shareholder resolution. capiton supports management to promote a culture of compliance.

(Update July 2024: Specification of the investment strategy with regard to the consideration of the PAI indicators.)

Proportions of investments 

All capiton investments follow the ESG characteristics outlined above, such that 100% of investments promote these ESG characteristics. Moreover, all of capiton’s investments are direct or indirect holdings.

Monitoring of environmental or social characteristics 

In accordance with the capiton ESG concept, a new investees potential to improve its ESG performance is determined during ESG due diligence in the acquisition phase using the capiton ESG questionnaire and dedicated interview approach and are also included in the investment memorandum. The results are summarised in an ESG rating. Additional to this rating, within its general ESG concept, capiton assesses the PAI indicators collected on an annual basis that are tracked on fund level and on company level. Based on the ESG performance analysis, rating objectives and recommended actions for each category are suggested in an action plan for the ownership phase.

The achievement rate of the ESG targets is reviewed annually (annual review reports and ESG ratings) and discussed by the portfolio company’s Advisory Board during the development phase. ESG value enhancement projects are carried out at portfolio company level where appropriate and value enhancing.

The ESG reports including the ESG rating and ESG rating objectives at exit of a portfolio company will be reported to potential investors in order to demonstrate the implementation of capiton’s ESG concept and the ESG improvements during the development phase.

(Update July 2024: Specification of monitoring of environmental or social characteristics.)

(Update April 2025: Specification of monitoring during the various phases of an investment)

Methodologies 

Within the ESG due diligence and annual review as outlined in the section ‘Due diligence process and monitoring of ESG characteristics’, capiton makes use of the capiton ESG questionnaire and a dedicated interview approach, in which relevant employees of the investment are questioned on ESG characteristics. Information obtained from the questionnaire and the interview is assessed and assigned a numerical grade, which then feeds the capiton ESG rating (as exemplary shown below) and the climate risk assessment. The aim of the rating is not to achieve the maximum score in each category, but a rating in the respective ESG category which is considered adequate for the analyzed company, whilst taking into account the materiality of the specific ESG aspect. Rating objectives for each category are suggested based on the analysis, therefore ensuring that the ESG concept is implemented efficiently and goal oriented.

The annual survey and reporting of the PAI indicators constitute our second ESG rating system. Here, too, the survey and formulation of improvement targets and their implementation serve the purpos of target-oriented and verifiable ESG performance.

Update July 2024: Specification of the methods with regard to the consideration of the PAI indicators.)

 

 

Data sources and processing 

Data for the relevant ESG characteristics and PAI indicators are generally based on three sources: First, internal documents and ESG KPI’s of the potential investment are screened for relevant ESG-related information. Second, interviews are conducted with relevant employees of the potential investment to fill-in potential data gaps and get a better understanding of the investment. Third, a desktop research is conducted, thereby gathering an external view on the potential investment. No data is estimated within this process. Data then feeds capiton’s ESG rating, PAI indicators and climate risk assessment outlined in the sections “Environmental or social characteristics of the financial product” and “Due diligence”.

Data quality is ensured through multiple safeguards: The data collection process is generally applied through an external consultant with experience in the sourcing and processing of ESG-related data. The consultant makes use of the four-eye principle within the data collection process. Moreover, the interviews serve as a mean to confirm data obtained from the internal documents and the desktop research. The PAI indicators are collected independently by capiton using a database and – where possible – verified.

(Update July 2024: Specification of data sources and processing with respect to the consideration of the PAI indicators.)

Limitations to methodologies and data 

capiton is active in the alternative investment market focusing on DACH mid-market companies, where standardized ESG reporting structures and ESG initiatives are only gradually being established. While capiton applies reasonable effort in ensuring data quality, data reliability and data availability, some portfolio companies may still be within the development phase of collecting relevant ESG-related data. While the lack of data-availability and quality in no case affects the ability to obtain a solid ESG understanding of these companies, capiton engages with the companies in such instances to promote increased data reporting capacities.

Due Diligence 

The Financial Product will only invest in portfolio companies and potential add-ons. For each investment by capiton, capiton’s ESG concept as described above is applied. For each potential add-on investment, a materiality analysis will be conducted assessing the impact of sustainability risks. The results of the ESG due diligence will be summarized and evaluated in the respective investment memorandum. The responsible deal team manager, supported by the capiton ESG team, is responsible for ESG due diligence.

 

The due diligence and the following annual ESG assessments are conducted by capiton’s external ESG consultant. Depending on industry and company specific issues, additional external consultants are hired. The ESG team is responsible for conducting the annual ESG reviews.

 

(Update April 2025: Insertion of the due diligence section.)

Engagement policies 

The actions to improve the ESG performance in the relevant portfolio companies are derived from the ESG due diligence. These actions are part of the value enhancement plan, which is determined for every portfolio company at the beginning of the development phase. The implementation of these actions is – based on the annual ESG reviews and separate ESG value enhancement projects where applicable – reviewed in the advisory board meetings of the portfolio companies at least once a year as well as – if required – in the internal monthly portfolio meetings at capiton. The Deal Manager in charge is responsible for the realization of the ESG rating objectives until exit. capiton’s ESG Team is responsible for the analysis of the ESG reporting by the portfolio companies and the condensed ESG reporting to capiton’s investors. In case of sustainability-related controversies, a dialogue with the management team of the investment is sought to discuss remedial actions.

It is capiton’s declared goal that the portfolio company fully complies with company-specific ESG standards / ESG rating targets at the time when the investment is to be sold. In particular, this refers to

 

  1. compliance with all relevant, applicable laws (e.g. environmental legislation, social legislation, governance),
  2. sustainable use of natural resources and compliance with social standards (e.g. anti-discrimination, job security, health and safety) as well as
  3. good governance, oriented on the principles of due commercial care (e.g. code of conduct, dealing with conflicts of interest, preventing corruption and money laundering).
  4. annual PAI indicator reporting

 

(Update July 2024: Specification of engagement policies.)