Firm
About UsCriteriaCultureResponsible Investment

Responsible Investment

Nautic’s investment Criteria and Firm Culture hinge on our industry experience, ability to identify and execute value creation strategies, and cultivation of a powerful partnership culture. Collectively, we believe these factors have helped to drive growth for our portfolio companies. Furthermore, we believe that considering responsible business practices can be key to remaining a partner-of-choice and generating long-term value. As such, the Firm seeks to consider material environmental, social, and governance (“Responsible Investment” or “RI”) factors in an effort to identify areas of potential risk mitigation or value creation. Nautic maintains a Responsible Investment Policy designed to reflect our approach to operationalizing our consideration of material RI factors, consistent with and subject to Nautic’s fiduciary duties and applicable legal, regulatory or contractual requirements.

Nautic believes that the consideration of RI within our investment process can be an effective strategy for identifying areas of potential risk mitigation or value creation, and helping meet the expectations of our investors throughout the investment lifecycle. In so doing, we seek to determine RI factors or opportunities that have, or have the potential to have, an impact on an organization’s going-forward ability to create, preserve or erode economic value for Nautic and its investors.

We aim to consider RI throughout our investment process:

Nautic Partners Responsible Investment graphic

Responsible Investment in Action

Nautic generally seeks to consider several Responsible Investment topics within our investment and portfolio oversight processes, consistent with and subject to the firm’s RI Policy. Examples of such considerations include, but are not limited to:

Environmental Management: Environmental considerations are an important part of Nautic’s approach to managing risk and creating opportunities related to RI in portfolio companies. Furthermore, we believe that mismanagement of the environment can result in regulatory scrutiny, and risks to the health of our portfolio companies’ constituents. Where necessary, the firm performs environmental due diligence to assess relative risk and encourages portfolio companies to implement risk-adjusted environmental management programs, where relevant and feasible.

Human Capital: Nautic intends to encourage the protection of employees from discrimination and harassment in the workforce in an effort to maintain our reputation as a partner-of-choice. Furthermore, Nautic believes in the importance of diverse perspectives both within our Firm and at our portfolio companies, and seeks to engage in dialogue regarding a diverse workforce inclusive of all.

Social and Labor Conditions: Nautic aims to encourage the refinement of the employee value proposition in an effort to attract and retain top talent and engage workforces. Our portfolio companies generally rely on human capital to generate value, and Nautic seeks to consider employee management and engagement, including factors such as development, advancement, retention, and compensation, when evaluating target investments and managing investments. In addition, we do not intend to tolerate the use of known “modern slavery” in the operations or supply chains of our portfolio companies and will evaluate such circumstances and allegations on a case-by-case basis. As the Firm understands it, modern slavery is an umbrella term that refers to situations of exploitation where an individual is unable to leave a place of work because of threats, violence, coercion, deception, or abuse of power.

Data Privacy and Security: Where applicable, Nautic aims to encourage the implementation of appropriate data governance standards and procedures both internally and at our portfolio companies designed to comply with regulatory standards and safeguard sensitive data, including proprietary portfolio company intellectual property, from malicious actors.

Ethics and Compliance: Nautic aims to encourage portfolio companies to behave ethically and in compliance with applicable local, state, and federal laws and regulations. This can include supporting portfolio companies in developing policies or providing guidance to portfolio company employees in an effort to prevent conflicts of interest and encourage ethical behavior. Companies Nautic invests in can have the opportunity to generate improved quality of care, which Nautic seeks to maximize through our ownership.

The above information is qualified in its entirety by Nautic’s RI Policy, which describes important details and considerations regarding Nautic’s RI approach.

Responsible Investment Leadership

Nautic’s Executive Committee maintains oversight of the Firm’s RI program and is supported in implementation by the Firm’s RI Committee, which was formed in 2024 and includes members of the Investor Relations, Compliance, and Investing teams. For these teams, Nautic seeks to provide an annual training on the requirements and implementation expectations of the Firm’s RI Policy.

Nautic RI Team

Certain statements about Nautic made by portfolio company executives herein are intended to illustrate Nautic’s business relationship with such persons, including with respect to Nautic’s facilities as a business partner, rather than Nautic’s capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in Nautic-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.