TVM Capital Healthcare’s approach as an active investor in the healthcare space is characterized by an innovative approach to problem solving in the healthcare industry, access to international best-practice expertise, and a patient-centric focus to delivering the highest possible quality of care or providing the highest possible quality of innovative products. The healthcare sector in our target markets in Asia and the Middle East is the fastest growing globally, which means that investments do have a substantial impact on the economy at large and are at the same time delivering notable societal benefits.
While our aim is to create profitable and healthy high-impact companies, sector leaders and “national champions”, we have combined our commercial approach with a social purpose: creating centers of excellence in healthcare in regions where access to high quality healthcare providers and products is not a given.
Our close engagement with the companies on social, environmental and governance (ESG) aspects, fosters a deep awareness and understanding of ESG issues that protects and enhances the value of our investments, makes us act responsibly towards the environment and society, and helps us attract and retain a motivated and loyal workforce which shares our pursuit of excellence.
Our portfolio companies are managed by applying our comprehensive ESG Framework to ensure highest quality of care for patients, protect the health and safety of employees, sustain the environment, and contribute to the development of the local communities.
We report annually on our ESG performance. We are an active signatory of the UN PRI (UN Principles for Responsible Investment) since 2015, and advocate the set of ten principles to guide the behavior of health care providers, payors, and investors developed by EPiHC which we joined as a signatory in 2021. Adopted voluntarily, these principles help to shape the values and behavior of health care providers and strengthen trust between providers and their stakeholders. Such trust is essential for the effective delivery of the best possible care to the greatest number of patients.
From initial due diligence to post-investment company development, we incorporate ESG considerations into investment decision-making processes and work with our stakeholders to understand and engage on their ESG practices. Once an investment is made, we continue to monitor investments for ESG risks ensuring our stakeholders’ interests are protected.
We apply the following policies, procedures, and initiatives which reinforce TVM Capital Healthcare’s fundamental values, including, but not limited to:
We adopt rigorous ESG due diligence procedures in our deal evaluation process. It is a core belief of the firm that these procedures foster competent investing and sound decision-making which is critical to our goals of providing our investors with compelling risk-adjusted returns and society with impactful employers and contributors. In all cases, we endeavor to apply these procedures to every opportunity we source and analyze, while remaining mindful of our fiduciary obligation to our investors and related contractual requirements.
Our investment due diligence includes an assessment of relevant legal and governance elements, including an entity’s history of compliance with applicable laws and regulations, adherence to corporate integrity norms and high ethical standards. We will not invest into companies that we know are engaged in child labor in contravention of applicable laws, human trafficking, and/or which are out of compliance with OFAC rules and regulations, or applicable sanctions.
As part of our pre-investment due diligence, we request and review the ESG and compliance policies of an investment target.
One of the conditions to closing an investment is not only the commitment of the stakeholders to the required level of ESG and compliance related policies and related implementation processes, but also the performance of background checks on key stakeholders of such company including a check through an OFAC/Sanctions List.
Further we understand that ESG, ethical standards, and compliance are not static concepts, and hence the adoption and company-wide implementation of such policies is an ongoing process of research, review, engagement, adoption, change/adjustment and improvement. We believe in the process nature of the development in industry, including the finance industry, towards a more sustainable way of doing business. In this dynamic environment we strive to be among the leaders in creating awareness for and implementing strong ESG practices.