ESG Due Diligence

ESG due diligence provides visibility into ESG risk and opportunity at time of investment, assessing non-traditional operational risks that typically fall outside the scope of other advisors-from consumer good will and reputational scrutiny to operational continuity. Malk's process is fit-for-purpose based on client needs and deal timelines, designed to align with stakeholder priorities and maximize opportunity to build Management buy-in and long-term ESG engagement.

Malk's proprietary ESG framework leverages elements of public company-focused frameworks, simplified into a set of issue areas to help companies and investors understand the relevance of ESG to their operations. Review of these issue areas is calibrated to a materiality threshold that considers a company's industry, business model, operations, and scale.

Private Equity Growth & Venture Credit

Private Equity

ESG diligence has become a cornerstone of a successful private equity ESG program. Malk’s ESG diligence enables GPs to identify ESG risks and associated mitigating strategies pre-closing, prepare to capitalize on ESG value creation opportunities during the hold period, and provide clear evidence of ESG integration to LPs. Malk’s process is designed to fit seamlessly into broader private equity diligence workstreams and flex with changing timelines and unique deal dynamics. Malk’s ESG diligence reports provide concise takeaways to inform deal team decision-making, with an executive summary tailored for investment committee discussions. Our detailed deep dives on ESG findings and recommendations often serve as the first step in a company’s post-close ESG roadmap.

Malk has worked on over 1300 private equity transactions to date, spanning a range of industries, sizes (from lower middle market to large cap), and deal structures.

PE Industry Expertise

Aerospace & Defense

Business Services

Consumer Products

Consumer Services

Energy

Financial Services

Food & Beverage

Healthcare

Industrial Materials

Pharmaceuticals

Retail

Real Estate

Software

Technology

Transportation

Growth & Venture

ESG diligence is an important tool for venture capital and growth equity investors to protect the value of early-stage investments and responsibly scale portfolio companies. Malk's ESG diligence services provide GPs with insight on current ESG risks and value creation opportunities based on a target's industry, business model, and growth plans. Our diligence process is been right-sized to help early- and growth-stage investors remain competitive by minimizing the data collection burden for targets, integrating with existing diligence workstreams, and offering flexibility to match dynamic timelines. Alongside an ESG analysis and go-forward recommendations, Malk provides tactical best-practices guides to support companies post-investment. These guides help founders and GP sponsors implement ESG practices appropriate for their size, stage, and growth plans.

Malk has worked on over 500 venture capital and growth equity transactions to date, from formation to late growth-stage investments.

Growth & Venture Sector Expertise

Artificial Intelligence & Machine Learning

BioTech

Climate Tech

Consumer Goods & Services

Cybersecurity

FinTech & Financial Services

Healthcare

Software

Credit

Lenders who are seeking to fully understand and protect their investments use any resources at their disposal to appropriately understand and price-in risk. Asset-specific ESG diligence has become an increasingly important part of a lender's diligence toolbelt. Malk's ESG diligence provides important and commercially-oriented perspectives that keep a lender's priorities top of mind.

Understanding that credit diligence merits a different approach from private equity formats, Malk has tailored its process to navigate these nuances and meet LP expectations. Our review process is sensitive to the limitations on data and access to management in the credit landscape. Malk's diligence equips the investment team with key findings and questions before important investment committee meetings, which can be supplemented with more comprehensive reviews prior to close.

Malk has supported hundreds of private credit ESG diligence and strategy engagements spanning industries, check sizes, timelines, and sub-strategies, including the assessment of sustainability linked loans.

EXPERTISE ACROSS CREDIT STRATEGIES

Direct Lending

Special situations (dislocation funds, etc.)

Distressed/opportunistic credit

Real estate debt

Liquid and high-volume strategies

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ESG Due Diligence

PE Industry Expertise

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