Asset Management

The ESG Phenomenon - Leonteq, Daubenthaler & Cie, KKR

Editorial Staff 18 May 2021

The ESG Phenomenon - Leonteq, Daubenthaler & Cie, KKR

Developments and commentary in and around the ESG investment space.

Leonteq has teamed up with the German asset manager, Daubenthaler & Cie, to issue what it claimed yesterday is the world’s first “donation certificate,” offering impact investing for clients via an index-tracker entity.

The organisations are launching the BeneFaktorZertifikate® product range. Leonteq Securities is acting as the issuer and index sponsor, while Daubenthaler & Cie is contributing its expertise as the index advisor. LIXX GmbH will act as index administrator of the new BeneFaktorIndex® family, the firms said in a statement. 

BeneFaktorZertifikate® are open-ended index tracker certificates on the underlying thematic index, BeneFaktorIndex®. The donation certificates invest in socially relevant future themes. Some 10 per cent of the annual product fees is given to a non-profit organisation pursuing impact goals.

The first BeneFaktorZertifikat® "No Animal Testing" is offered for subscription in Germany exclusively via comdirect, a brand of Commerzbank, starting yesterday. It is comprises shares from companies which confirm that they do not conduct animal testing, and the donation of this BeneFaktorZertifikat® is given to PETA for their commitment to animal protection.

Kohlberg Kravis Roberts, the US-based investment house, has agreed to buy most of ERM, a sustainability consultancy - a move which highlights how this area remains a hot business and finance topic. 

The financial terms of the transaction were not disclosed.

KKR will acquire the stake from OMERS Private Equity and Alberta Investment Management Corporation, with ERM’s management team and partners remaining as minority investors.

Founded 50 years ago, ERM has built technical expertise in environmental health, safety, risk and social matters, and has more than 5,500 consultants, including 580 partners, across 150 offices in over 40 countries. 

ERM partners will continue to be shareholders in the business. KKR’s investment is being made through its Core Investments strategy, which represents capital targeting longer-term opportunities. KKR is a long-standing client of ERM’s consulting services, KKR said. 

The transaction is expected to close in the third quarter 2021, subject to regulatory approvals and other customary closing conditions.

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