Private Credit Funds can now join the EDCI as contibuting members
During the 2024 annual sprint, the EDCI SteerCo reviewed the private credit membership model, and is excited to announce that Private Credit firms can now formally join the EDCI as contributing members in exactly the same way that Private Equity firms can! This change goes beyond the previous membership model which focused on data sharing between private credit and private equity funds. Details of the revised membership opportunity include:
PC firms are invited to submit data to the initiative and should indicate clearly if the company they are lending to is sponsor-backed
- To ensure no data duplication, PC data will only be added to the benchmark for PortCos that are
-
- Not sponsor-backed, or
- Sponsor-backed by non-EDCI member GP(s)
- Visualization of all contributed PC data will be made available in the online portal for contributing PC funds to view in the dashboard
The EDCI has several value propositions for Private Credit firms
The ESG Data Convergence Initiative has a number of functions that are specifically tailored for private credit firms
Data Requests from GPs
Request ESG data from individual portfolio companies – directly from GPs and within the EDCI platform
ESG Data in Lending
Leverage benchmark data to improve ESG risk analysis and to inform underwriting and lending decisions
ESG Impact
Drive measurable ESG impact over time – normalized at the sector, region, and revenue levels
Financial Outcomes
Better understand current ESG performance in the private markets and its link to financial outcomes
Ambitious yet Sustainable Target – Setting for SLLs
Inform target – setting for Sustainability Linked Loans (SLLs) and link to changes in industry benchmarks
Features
Streamline ESG Data Collection
Request data directly from GPs in the EDCI portal, saving time during underwriting
Leverage Granular ESG Benchmarks
Mitigate risk by benchmarking potential investments against similar companies from around the world
Assess Asset ESG Performance
Compare ESG performance over time and visualize progress on key metrics
“Fantastic initiative. Standardization of metrics across the industry is very helpful. This initiative has a credible set of backers and is getting much traction.”
“This project has been wildly helpful for a number of reasons: 1) streamlining LP requests 2) helping our portfolio companies continue to prioritize certain metrics for reporting and 3) forming a baseline to drive change at portfolio companies.”
What EDCI members say about the initiative
Hear what members say about the EDCI
What does it mean for Private Credit firms to be part of this initiative?
To participate, Private Credit firms agree to:
- Report portfolio EDCI data on a best efforts basis during the annual reporting cycle
- When requesting ESG data from a borrower, align that request with the EDCI metrics and their definition
- On a best efforts basis, encourage additional industry efforts to drive ESG information / data request convergence
- Be publicly associated with the initiative
- Contribute to the initiative’s financial sustainability
Learn more
Use our interactive benchmark demo to learn more about how you can include the EDCI platform in your work.
Interested in learning more about how the EDCI can support your organization?
Click “Learn more” for an exploratory conversation and a demo of the EDCI functionality.