Rotunda Capital Partners

At a Glance

Industry

Financial Services and Insurance

Project Types

Financial Evaluation and Planning, Sustainability and Energy Management Strategy

Year

2021

Location

Bethesda, MD

Summary

Joaquin helped Rotunda develop a policy and roadmap to formally integrate ESG considerations throughout its investment process.

Goals

Rotunda Capital Partners (“RCP”), a middle-market private equity firm, sought to formalize its ESG strategy and policy and align the ESG strategy with its core values. RCP engaged Joaquin to develop a roadmap to integrate ESG factors throughout the investment process, seeking to better position portfolio companies for long-term growth and success. Joaquin engaged with other private equity firms, portfolio companies, consultants, and ESG specialists to benchmark best practices, identify appropriate ESG considerations, and set actionable goals for the firm going forward. 

Solutions

 Joaquin accomplished the following four steps to support Rotunda’s ESG efforts:

  1. Identified Key ESG Considerations: Joaquin identified ESG factors to prioritize for relevancy and ability to positively impact the financial and operational success of portfolio companies through risk mitigation, value creation, and potential to enhance the company’s value proposition. Within each area, he determined how a strong ESG thesis would support Rotunda’s business building goals.
  2. Designed and Implemented ESG Survey: Joaquin developed a portfolio company ESG survey, to both uncover existing sustainability measures and identify actionable areas to implement ESG-driven initiatives that align with Rotunda’s ESG thesis. The survey will be a multi-year endeavor, allowing Rotunda to benchmark improvements over time across its portfolio.
  3. Engaged with Portfolio Companies on Targeted ESG initiatives: Armed with data and survey responses, Joaquin met with several portfolio company representatives to explore ESG initiatives that would drive value creation and cost savings to create buy-in among portfolio companies.
  4. Established Rotunda ESG Policy: To ensure ESG efforts were maintained and developed at the end of the fellowship, Joaquin assisted Rotunda in drafting an ESG policy to utilize throughout its investment process.

Potential Impact

Joaquin drafted an ESG policy/roadmap for ESG integration and successfully engaged with several portfolio companies on tangible initiatives. The project included 16 portfolio company facilities in eight states and identified several potential cost savings initiatives, including packaging efficiencies ($80,000 annually), LED lighting improvements ($2,400 annually), and improved insulation ($10,800 annually). He also utilized Energy Star Portfolio Manager to create a tracking system for utility usage and spend which will enable Rotunda to set energy usage goals for portfolio companies, track progress across time, and compare facilities to determine areas of possible improvement.

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