Blue Wolf was founded in 2005 on the belief that how we invest capital is as important as the returns that we generate. This means that our fiduciary responsibility to shepherd and grow the assets of our investors should result in investments in companies that are sustainable in the long term and have a positive impact on society.
These beliefs are part and parcel of our investment strategy because a sound business strategy recognizes that a healthy environment and a well-compensated workforce make for a more just and sustainable society. In practice, this means that through our due diligence we seek to understand not only the financial and business model of the target company, but also its impact on society. Such an analysis goes beyond merely determining if the target company is compliant with government laws and regulations; it also examines whether or not the firm's culture recognizes that its long-term fortunes are tied to the progress of society. This is one of the fundamental reasons that we joined the Principles for Responsible Investment (PRI) and have participated on the PRI's Private Equity Work Stream to aid general and limited partners in integrating responsible investment in private equity.
As a private equity firm that is focused on companies in the middle market it is our responsibility to improve the company's operational and financial performance while inculcating a business philosophy that reflects our core set of values.
- We will incorporate environmental, social and governance issues into our financial analysis when evaluating target companies for investment, and throughout the period of ownership.
- We will seek to continually improve the performance of the companies in which we invest in ways that address issues of long-term sustainability by promoting a culture that strives to build best-in-class companies in areas such as occupational safety and health and environmental resource management and efficiency.
- We will seek to engage with all relevant company stakeholders in the larger community, either directly or through representatives of portfolio companies.
- We will seek to use a company's governance structure to insure proper levels of oversight in all aspects of a company's operation, and specifically with regard to audit, risk management, conflicts of interest, and the implementation of compensation policies that align the interests of owners and management.
- We will comply with all applicable national, state, and local labor laws in the countries that we invest. We will provide a safe and healthy work environment, pay fair wages and benefits, eliminate all forms of workplace discrimination, insure that no investments are made in companies that utilize forced or child labor, and work with employees and labor unions as respected partners in our businesses.
- We will adopt strict policies that prohibit bribery and improper payments to public officials which are consistent with the U.S. Foreign Corrupt Practices Act, and the OECD Anti-Bribery Convention.
- We will provide timely information on all the matters noted above to our limited partners and be transparent about our activities and those of our portfolio companies.