Screening Business Model for Exclusionary Issues

Using ESG screens during due diligence also helps us to ensure that Churchill is investing ethically and excluding companies that are not aligned with our core values and standards. For example, in the case of a manufacturing company we were considering, we discovered that a portion of its revenues were tied to materials that could be used in the production of cluster bombs or nuclear weapons. Given the confidential nature of this portion of the company’s revenue, the management team was not able to disclose the product’s end use, so we were not able to determine if the business conflicted with the governance and social responsibility criteria in our ESG policy and exclusions list. As a result, we opted not to invest in the deal. Our practice of screening companies based on an ESG exclusions list is done on a case-by-case basis as opposed to using a revenue threshold.

Screening to Ensure Ethics

Churchill Asset Management
Location
430 Park Avenue, 14th Floor
New York, NY 10022
Phone
(212) 478-9200
Email
info@churchillam.com

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The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results. Please note investments in middle market loans are subject to various risk factors, including credit risk, liquidity risk and interest rate risk. Churchill Asset Management LLC is a majority-owned subsidiary and member of the TIAA group of companies.