Impact that creates
We believe that strong financial performance is not an end in itself but goes hand in hand with a positive impact on society and the environment. Our commitment is to create long-term value and lasting impact through an integrated investment process.
Our principal investment themes are sustainability and health. We seek to invest in companies and assets in our two priority sectors that have an intentional, measurable, and additional social and/or environmental contribution. Our ESG and impact framework is designed to both support risk mitigation and drive value creation.
Accredited by the Green Climate Fund
As the first North American private equity buyout fund accredited by the Green Climate Fund (GCF), Pegasus can partner with GCF to fund assets and companies that enhance low-emission and climate-resilient development, taking into account the needs of communities that are particularly vulnerable to climate change impact.
GCF is an anchor investor and partner of the Subnational Climate Finance initiative that aims to invest in and scale mid-sized climate resilient, low-carbon infrastructure and nature-based solutions in developing countries.
Please also see our dedicated website on the Subnational Climate Fund.
Impact Sectors and Themes
We focus on solutions related to sustainability and health. From green infrastructure to improved health and well-being, our investment themes and strategies are based on the long-term value creation that offer scale and depth of environmental and social impact. Examples of areas we are interested in include:
Renewable energy & energy efficiency, waste & water management, nature-based solutions, food & agriculture
Smart healthcare, brain health, microbiome, nutrition, sleep & mind-body, lighting & circadian rhythm, wellness
Our investee companies generate lasting impact towards the Sustainable Development Goals (SDGs). We seek to make a strong contribution in particular to SDG 3 (health and well-being), SDG 7 (access to clean energy, SDG 8 (job creation), and SDG 11 (sustainable communities), and SDG 13 (climate action).
Creating long-term value by considering our impact on the people and planet is the starting point of our investment philosophy. We select our investments individually and seek measurable positive social, environmental, and economic impact. ESG and impact considerations are integrated throughout the entire investment cycle:
Every investment opportunity undergoes significant due diligence to identify how or whether it fits within Pegasus’ investment themes, impact potential, ensure that the investment opportunity is not on Pegasus’ exclusion list, and to assess the potential ESG risks and opportunities.
Due Diligence Stage
We conduct comprehensive due diligence on ESG risks and opportunities and potential impacts on sustainable development. Depending on the circumstances, technical consultants may be engaged for additional expertise. For medium risk projects, we conduct and publish the Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP).
Investment Decision Stage
Material findings from the screening and diligence stages help to identify ESG performance gaps, enhance practices, and address positive and negative impacts which result in an ultimate investment decision.
Investment Agreement Stage
Our legal investment agreement(s) incorporate ESG and impact criteria, as appropriate. This can include ESG action plans with targeted timelines to close ESG performance gaps and ESG and impact targets and requirements to report on performance.
Holding, Monitoring & Reporting Stage
We measure and monitor the investee’s ESG and impact performance timely to gather learnings and insights. By engaging with investees to improve their ESG and impact performance, we ultimately drive the depth of our impact even further. We report back to our investors on a regular basis including progress made towards our impact goals.
We are convinced that assets which are optimized operationally, financially, as well as for ESG and impact aspects are more attractive to potential future owners and yield better exit results while also attracting a broader set of potential exit partners.
We are committed to rigorous qualitative and quantitative measurement of the sustainability outcomes and impact that we have with our investments. We seek to measure, analyze, and report on the impacts of our investments transparently and consistently. We apply internationally recognized standards to our metrics such as the Impact Reporting and Investment Standards (IRIS), the IFC Operating Principles for Impact Management, and the Sustainable Development Goals.
Our comprehensive impact measurement system is implemented throughout the entire investment lifecycle – from the pre-investment process to holding and exiting the investments. By evaluating the effectiveness of the capital invested and assessing the additionality of the impact created, we aim to maximize the impact of our portfolio investments. For each investment, we identify and track the relevant key performance indicators (KPIs), analyze the data, monitor the performance, engage with the investees, and where we deem it important, take corrective actions. We also initiate independent audits of measured impacts and external verification and publish the results on a regular basis.
Our goal is to improve the lives of stakeholders in meaningful and lasting ways. Engagement is critical to understanding the views and interests of different stakeholders such as affected people in surrounding communities.
We help our partners and project developers to consult and engage with stakeholders throughout the investment and project life cycle to identify and manage environmental and social impacts. This presents a vital element for promoting transparency, accountability, effective participation and inclusion. An ongoing feedback and grievance mechanism provides stakeholders the opportunity to submit any feedback or raise grievances at any time.
Committed to producing solutions for Society's greatest challenges
Operating Principles for Impact Management
Pegasus is a Signatory of the Operating Principles for Impact Management. The Impact Principles, launched in April 2019, provide a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment life cycle.Visit website
Pegasus is a Signatory of the UN Principles for Responsible Investment (“PRI”), the world's leading proponent of responsible investment; PRI works to understand the investment implications of ESG factors and to support its international network of investor signatories in integrating these factors into their investment and ownership decisions.Visit website
Impact Capital Managers
Pegasus is a founding member of Impact Capital Managers, a network that brings together the general partners of market-rate funds deeply committed to impact investing in the United States. Collectively representing over $5 billion in impact-focused capital, the members will work together to answer essential questions and set common goals.Visit website
Pegasus is an active member of Ceres and its Investor Network on Climate Risk; Ceres is an advocate for sustainability leadership and mobilizes a powerful network of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy.Visit website
Pegasus is a member of the Global Impact Investing Network ("GIIN"), which signifies a commitment to deepening our engagement in the impact investing industry.
Green Climate Fund
Pegasus is the first traditional North American alternative asset manager accredited by the United Nations’ Green Climate Fund (GCF). The GCF was established by the 194 countries who are parties to the United Nations Framework Convention on Climate Change, and seeks to support the efforts of developing countries to respond to the challenge of climate change.Visit website
Regions of Climate Action
Pegasus is Chair of the Climate Finance Committee of the R20, a non-profit organization under leadership of sub-national and regional governments globally in collaboration with the UN; via policy, technology and finance, the R20 helps members implement low carbon economic development projects that measurably reduce GHGs.Visit website
Planet Pledge Alliance
Pegasus is a member of the Planet Pledge Alliance, a partnership with Planet Pledge. Planet Pledge is a non-profit network of top philanthropic, NGO and investment community members, advancing scalable, multi-benefit projects that significantly mitigate carbon emissions and lead us to a low-carbon economy.
Impact Management Project
Pegasus supports the Impact Management Project, a collaborative effort by thousands of global practitioners to develop a shared language for talking about, measuring and managing impact. By helping every investor and entrepreneur understand their effects on people and the planet, both positive and negative, we aim to encourage more impactful capital allocation.Visit website
Intentional Endowments Network
Pegasus is a member of the Intentional Endowments Network, a collaborative network that supports colleges, universities, and other mission-driven tax-exempt organizations in aligning their endowment investment practices with their mission, values, and sustainability goals without sacrificing financial returns.Visit website
We Are Still In
Pegasus is a Signatory of We Are Still In campaign. We Are Still In as a single network in U.S. climate includes more than 2,700 mayors, governors, tribal leaders, CEOs, investors, university presidents, and faith organizations, together representing more than 130 million Americans across 50 states and over $6trillion of the American.Visit website
Pegasus is a Signatory of the Stockholm Declaration, re-affirming our support for the United Nations Sustainable Development Goals (UN SDGs). The Stockholm Declaration is an initiative of the Global Reporting Initiative (GRI), the UN PRI, and the UN Global Compact. The declaration serves as a platform for the global investment community to announce their commitment to using the UN SDGs as a framework for investing and serves as a call for a reporting framework that will allow investors to record progress towards the common goals.Visit website