Regulatory Information
This section includes a number of disclosures and information on the way Quilvest Capital Partners AM S.A. (“QCP AM”) operates and manages the different investment funds as required by the applicable regulations and QCP AM’s policies and procedures.
Client complaints
This procedure covers the obligations of Quilvest Capital Partners AM S.A. regarding potential client complaints and how they can be submitted by an investor or client.
Best Execution
Quilvest Capital Partners AM S.A. (“QCP AM”) best execution rules are embedded within the larger scope of QCP AM’s duty to act in the best interest of the AIF’s investors.
Initially the best execution framework was delimited by the European Parliament Directive 2004/39/EC on Markets in Financial Instruments (MiFID). This directive sets a number of requirements for the investor’s protection standards that are designed to promote market efficiency and the best possible execution results for the investors.
MiFID best execution obligations require investment firms to take all reasonable steps to obtain, when executing orders on behalf of their clients, the best possible result, taking into account the executing factors (price, cost, speed, settlement, size, etc) or any other consideration relevant to the execution of the order.
On its turn, Commission Delegated Regulation 231/2013 (Regulation 231) governing the Alternative Investment Fund Managers industry, states that the best interest of the AIFs investors must be protected at any time. For this, one of the protection measures that the Regulation 231 promotes is the best execution rule, applying the MiFID directive to the Alternative Investment Fund’s scope.
Remuneration
This remuneration policy has the objective of defining and describing the principles and remuneration rules that apply to the AIFM’s employees. These guidelines are set by the Board of Directors of Quilvest Capital Partners AM S.A. (“QCP AM”) following the recommendations of the Remuneration Committee of QCP AM, and the key applicable regulations and regulatory guidelines.
This policy has been designed taking into account the business strategy, objectives, values and interests of the AIFM and portfolios it manages and of the investors in such portfolios, including the required measures to avoid conflicts of interest. The policy seeks to promote a sound and effective risk management in a way that is consistent with the risk appetite of QCP AM and with the risk profiles of the portfolios it manages.
Liquidity Risk and Liquidity Management
Liquidity risk is the possibility that an organisation or investment vehicle will experience a decrease in value or losses due to its inability to secure the necessary liquid funds, or because it is forced to obtain them at far higher cost than under normal conditions, in order to run its operations and fulfil its obligations and commitments.
Additionally, a liquidity risk may refer to the lack of sufficient liquid funds to honour the obligations of an organisation or investment vehicle.
From an investment point of view, a liquidity risk can be market related —in terms of price impact and potential demands for additional guarantees—, linked to investor behaviour, derived from the investment implementation process, or connected to the operating requirements in the case of some particular investment structures.
Conflict of interest
Quilvest Capital Partners AM S.A. (“QCP AM”) activities are ruled, among others, by the Law of 12 July 2013 on Alternative Investment Funds Managers (AIFM), the Law of 17 December 2010 on its Chapter 16 Management companies managing UCITS governed by Directive 2009/65/EC, and all the related regulations linked to these laws at local and European level.
Commission Delegated Regulation 231/2013 describes the type, policies, procedures, and monitoring of conflict of interest within the different activities of an AIFM, including the activities performed by delegation on behalf of the AIFM and the vehicles that it manages.
Additionally, CSSF Regulation 10-04, transposing European Directive 2010/43/EU, also refers to the organisational requirements, conflicts of interest, conduct of business, risk management and content of the agreement between a depositary and a management company. Finally, CSSF Circular 18/698 requires that regulated AIFM establishes, implements and maintains an effective conflict of interest policy.
Voting rights
In the general context of the avoidance of Conflict of Interest, European regulations establish that asset managers “must develop effective strategies for determining when and how any voting right held by the structure’s portfolio it manages is to be exercised, to the exclusive benefit of the vehicle and its investors”.
The strategies above mentioned must determine measures and procedures in order to monitor the relevant corporate actions, ensure the exercise of voting rights in accordance with the investment objectives and policies, and prevent any conflict of interest that could arise from the exercise of these voting rights.
Also it is mentioned that a description of the strategies and the details of the actions taken on the basis of those strategies shall be made available to the investors upon request.
This Proxy Voting Policy is designed and implemented in a manner reasonably expected to ensure that voting rights are exercised in the best interests of the vehicles and its investors.
Environmental, Social and Corporate Governance
In respect of the European Regulation on Environmental, Social, and Governance (ESG) matters and particularly in connection with Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (SFDR), Quilvest Capital Partners AM S.A. (“QCP AM”) has implemented the following approach.
Environmental, Social and Corporate Governance policy
Environmental, Social and Corporate Governance related disclosures
Disclosure on sustainability risk. Art. 3 of SFDR
At QCP AM, we understand that as a financial market participant we have to manage not only financial matters and effects but also the potential environmental, social and governance impacts of our investments. We believe that by integrating ESG analysis into our investment process, we can create long- term value, identify growth opportunities, and reduce the risk of ESG related harms, while fostering sustainable investments. For this reason, starting in March 2021 and following the SFDR regulation, QCP AM has put in place an ESG Policy that is recommended as a default option for each managed portfolio.
Given the variety of investment portfolios that AIFM manages in cooperation with different General Partners and Investment Advisors, the final adoption of such policy is decided for each respective portfolio and requires the commitment of the relevant actors. The adoption or not of such policy is thus disclosed in the relevant documentation available to investors.
Disclosure on principal adverse impact. Art 4 of SFDR
In addition, the SFDR Regulation requires an AIFM to disclose its approach with respect to the principal adverse impacts of its investments. Taking into consideration the variety of investment portfolios that QCP AM manages in cooperation with different General Partners and Investment Advisors, the final adoption of ESG characteristic or a sustainability objective is decided for each respective portfolio and requires the commitment of the relevant actors. When a portfolio commits to either ESG characteristics or a sustainability objective, an ESG procedure will detail the specific objectives, indicators and the related evaluation of principal adverse impacts of its investment. Due to data availability/quality limitation, AIFM does not consider principal adverse impacts of investment decisions on sustainability factors. For further information on the portfolios/funds that promote ESG characteristics or a sustainability objective, please refer to the page “Investment Companies”.
Disclosure on Remuneration Policy
Quilvest does not promote in any case the assumption of excessive sustainability risk either in the management of the Company or in the way its portfolios are managed. Furthermore, variable remuneration is not linked to the specific performance of any portfolio or fund and therefore there is not any explicit or implicit incentive to assume undue sustainability risk. The overall attitude of each professional towards risk management is a key qualitative variable remuneration assessment criteria. For additional information, the remuneration policy is published on our website under the “Regulatory Information” section.
Marketing Status of AIFs under Management
Quilvest Capital Partners AM S.A. (“QCP AM”) notes that the AIFs included in the link below, under its management, are no longer actively marketed for distribution in the indicated EEA Member State for which they had obtained the AIFMD marketing passport:
Marketing Status of AIFs under management
Contact arrangements for non-professional investors seeking additional information on the AIFs under Management
Investors wishing to process any subscription, payment, repurchase and redemption orders, requiring any information on how to process these orders or about their investor rights or any other information related to the AIFs may contact QCP AM using the email provided below. Where a Transfer Agent is involved in dealing with these orders, QCP AM shall direct your request to the right person. Further, investors wishing to receive the information and documents pursuant to Articles 20 and 21 of the Luxembourg law of 12 July 2013 on alternative investment fund managers, as amended, may contact QCP AM using the email provided below.
You may contact QCP AM for help via email: Middle-Office@quilvestcapital.com
Upon request, QCP AM shall provide you with a summary note of the relevant information on arrangements.
