Strategies

Our investment teams have distinct strategies and focus on investing in mid-market companies in a variety of sectors in the US and Europe.

Our investment teams have distinct strategies and focus on investing in mid-market companies in a variety of sectors in the US and Europe.

Flexible capital and strategic assistance for market-leading companies in high-growth sectors in North America and Europe

Equity capital for mid-sized companies in the DACH region and Italy

Growth capital and strategic assistance to software companies throughout Europe

Impact platform investing in climate and nature-based solutions

Equity capital for founder-owned companies in consumer and multi-unit, food and beverage, and business services.

Private equity primaries, co-investments, and secondaries across North America and Europe

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Responsible Investment Report 2024

Reducing our GP and portfolio GHG emissions

Reducing in line with our science-based target

Bregal is on track to meet its operational science-based target by 2030 with ongoing Scope 2 mitigation for its corporate offices. Bregal has reduced its net operational emissions by 42% on average since 2019, despite a new office opening in Zug in 2024 and two office relocations. While ongoing business growth has led to annual increases in absolute Scope 1 & 2 emissions, Bregal has remained on track for its target through the procurement of renewable electricity.

Bregal continues to measure its value chain emissions and improve emissions data quality. For the past three years, Bregal has measured all material Scope 3 categories with a strong focus on improving data quality in its two largest categories outside financed emissions – Business Travel and Purchased Goods and Services.[[1]]

Scope 1 & 2 total[[2]]

Scope 1 & 2 total[[2]]

2019 baseline:

178

2023:

128

2024:

103

2030 required emissions:

89

Scope 3 emissions categories

Scope 3 emissions categories

29%

Business Travel

2%

Employee Commute

1%

FERA

66%

Purchased Goods and Services

Carbon neutrality since 2017

While prioritizing real reductions, Bregal consistently matches 100% of its remaining emissions with high quality carbon credits with environmental and social co-benefits for local communities. Historically, Bregal has sourced carbon credits through its portfolio company, PUR – a leading developer of Nature-based Solutions (“NbS”) projects that seek to improve climate, livelihoods, and biodiversity outcomes.

Engagement with portfolio companies on carbon reduction

Measuring and reducing carbon emissions continues to be a priority for Bregal, further augmented by the increasing demand for low carbon products within our portfolio. Post-investment, we support our portfolio companies with calculating high quality carbon footprints aligned with the GHG Protocol[[3]], identifying key levers for reduction, and defining accountability for driving reduction every year during our holding period. Overall, 48 portfolio companies reported carbon emissions data for CY24, representing 71% of our total direct equity portfolio.[[4]]

Progress on science-based target setting

Through a combination of data driven analysis, a tailored decarbonization approach, and proactive support for companies, Bregal continues to be on track to meet its interim science-based target. As of 2024, 46% of our total eligible invested capital has either approved or committed science-based targets. We expect our overall alignment to continue to fluctuate as companies enter and exit our portfolio.

  % of direct equity portfolio # of companies
Approved SBTs 37 23
Committed to SBTs 9 5

In addition to near-term targets, Bregal committed to net zero via the Net Zero Asset Managers (“NZAM”) initiative, with the target to achieve net zero for 80% of AUM by 2050 or sooner. Bregal tracks its portfolio’s net zero maturity using the Private Markets Decarbonization Roadmap ("PMDR") framework, developed by Bain & Company[[5]]. Bregal’s portfolio is 35% ‘Aligned’ or ‘Aligning’ with PMDR, an increase from 28% in 2023. 27% of total invested capital is currently ‘Preparing to Decarbonize’, having measured Scope 1, 2 and 3 emissions and established decarbonization plans. In the past year we’ve supported companies in moving along this maturity framework, with an uptick in companies moving from preparing to aligning to net zero.

Portfolio alignment with Net Zero (%)[[6]]

Portfolio alignment with Net Zero (%)[[6]]

35% ‘Aligned’ or ‘Aligning’ to net zero in 2024

Not started

Capturing data

Preparing to decarbonize

Aligning to Net Zero

Aligned to Net Zero

1

Reducing our GP and portfolio GHG emissions

1

2

Investing to achieve portfolio-level emissions reductions

2

3

Measuring climate and nature risk

3

4

Investing in climate and nature solutions

4

5

Engaging industry on climate and nature

5

Our climate and nature action plan

Our climate and nature action plan

1

Reducing our GP and portfolio GHG emissions

Measuring and reducing carbon emissions continues to be a priority for Bregal, further augmented by the increasing demand for low carbon products within our portfolio.

2

Investing to achieve portfolio-level emissions reductions

Bregal’s Sustainable Development Financing (“SDF”) program is a €50 million capital pool that provides loans on attractive terms to existing portfolio companies to invest in projects with positive sustainability outcomes.

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3

Measuring climate and nature risk

Bregal strengthened its capabilities on and internal management climate and nature risk monitoring for its direct equity strategies in 2024.

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4

Investing in climate and nature solutions

In addition to managing climate and nature-related risks and opportunities across its investment portfolio, Bregal launched a dedicated impact strategy in 2022.

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5

Engaging industry on climate and nature

Bregal reinforces its climate and nature commitment by actively contributing to industry leadership, primarily through initiative Climate International (iCI).

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