gryphon transparent

Evaluating and Managing Governance Issues

Thorough ESG due diligence helps us to identify environmental liability, legal liability or repetitional risk that we may determine to be unacceptable. For example, in researching an investment opportunity, we discovered that a senior executive at the company had been involved with securities fraud and his securities license was revoked. While the infraction took place while the executive was employed at a different company, we considered this to be a significant governance concern and, as a result, we did not feel comfortable lending to the company. We communicated the reason for declining the investment to the sponsor, as is common practice.

Reducing Investment Risk