Join Capital Fund I GmbH & Co. KG (“JCF1”)

LEI: 529900B3ZT2EIF3TES63

The disclosures relating to the Fund apply accordingly to JCF1 with the exception that the investment strategy and the investment exclusions differ.

JCF1’s investment objective is to generate long-term capital appreciation through equity and equity-related investments in the early and development stages of pre-Series A companies located in countries in the European Union and Switzerland with a focus on the consumer internet and technology sectors in the target Region. JCF1 will invest at least 50 per cent of Total Commitments in SMEs.

Further, the investment exclusions of JCF1 differ from those of the Fund. JCF1 will not invest in any portfolio company

1. which Join Capital is aware of is involved in illegal activities;
2. which is engaged in property holding (other than in an ancillary, non-commercial capacity);
3. which is engaged in the manufacturing, distribution or sale of arms or ammunitions (other than for game hunting purposes);
4. which is engaged in the manufacturing, processing, distribution or sale of tobacco products or hard spirits (other than the distribution in an ancillary capacity through retailers such as supermarkets or restaurants);
5. which is engaged in human cloning or genetically modified organisms; or
6. which is directly linked to gambling.

Join Capital Global Strategic Technologies Fund III GmbH & Co. KG (the “Fund” / der “Fonds”)

LEI: 529900CLT7AOQOZJ1748

Summary

The Fund considers certain environmental and/or social characteristics as part of its investment decisions and monitoring processes. While Join Capital does not seek to make investments with a sustainable investment objective as defined by the SFDR, it acknowledges that some of the world’s most pressing challenges arise from inefficient industry practices and legacy operations. Believing in the transformative power of today’s entrepreneurs, Join Capital supports those at the forefront of building ‘The Neue Industry’—a new ecosystem representing a paradigm shift towards more sustainable, equitable, and efficient business models and technologies.

The consideration of environmental and/or social characteristics is carried out both before and after an investment. For this purpose, information is initially and regularly obtained from the portfolio companies by means of qualitative queries. The Fund incorporates exclusion (negative screening) aspects during the decision-making process. Thereby the Fund considers several ESG themes to be the key to responsible investing.

Zusammenfassung

Der Fonds berücksichtigt bestimmte ökologische und/oder soziale Merkmale im Rahmen seiner Investitionsentscheidungen und Monitoring-Prozesse. Join Capital strebt zwar keine nachhaltigen Investitionen im Sinne der SFDR an, erkennt jedoch an, dass einige der dringendsten Herausforderungen der Welt auf ineffiziente Branchenpraktiken und überholte Betriebsabläufe zurückzuführen sind. Join Capital glaubt an die transformative Kraft der Unternehmer von heute und unterstützt diejenigen, die an vorderster Front am Aufbau der „Neuen Industrie“ beteiligt sind – einem neuen Ökosystem, das einen Paradigmenwechsel hin zu nachhaltigeren, gerechteren und effizienteren Geschäftsmodellen und Technologien darstellt.

Die Berücksichtigung von Umwelt- und/oder Sozialmerkmalen erfolgt sowohl vor als auch nach einer Investition. Zu diesem Zweck werden zunächst und regelmäßig Informationen von den Portfoliounternehmen durch qualitative Abfragen eingeholt. Der Fonds bezieht Exklusionsaspekte (negatives Screening) in seinen Entscheidungsprozess ein. Dabei betrachtet der Fonds mehrere ESG-Themen als Schlüssel für verantwortungsvolles Investieren.

No sustainable investment objective

The Fund promotes environmental or social characteristics but does not have as its objective sustainable investment.

Environmental or social characteristics of the financial product

The Fund promotes environmental and/or social characteristics by implementing certain investment exclusions during the investment decision-making process (see section ‘Investment strategy’).

The purpose of the Fund is to build, hold and manage (including to divest) a portfolio of equity and equity-related investments in portfolio companies. The Fund’s investments will mainly be aimed at early-stage companies that at the time of investment, plan to be primarily (50%+ budgeted revenue cumulatively over initial three years after the initial investment) active or engaged in the development, manufacturing, distribution or sale of technologies, components and products for defense or security customers. The Fund shall conduct investments in portfolio companies originating in countries that are NATO Allies or NATO Partners, and opportunistically elsewhere.

The Fund’s investment strategy is implemented in the investment process on a continuous basis: Every investment opportunity will be tested against the Fund’s investment strategy, in particular its investment exclusions, as part of the due diligence prior to any investment made by the Fund. The Fund shall not invest, guarantee or otherwise provide financial or other support, directly or indirectly, to companies, including portfolio companies

1. which Join Capital is aware are involved in illegal activities;
2. which are engaged in property holding (other than in ancillary, non-commercial capacity);
3. which are engaged in the production, trade, stockpiling sale, transfer, import, export or any other activity or service associated (including technological research) with Controversial Weapons
4. which are engaged in the manufacturing, processing, distribution or sale of tobacco products and its derivatives (e.g., cigarettes, cigars, pipe tobacco) or hard spirits (other than the distribution in an ancillary capacity through retailers such as supermarkets or restaurants);
5. which are engaged in human cloning, whether for reproductive purposes or for the therapeutic and/or research purposes, or genetically modified organisms;
6. which manifestly violate human rights (e.g., child labor, exploitation of workers, human trafficking, violation of internationally recognized human rights, discrimination based on racial reasons, religion and especially gender discrimination);
7. which are engaged in production or distribution through any channel of pornographic material, activities and services that support prostitution and its promotion;
8. which are engaged in exploration, mining, processing/transformation, storage, distribution and trade of thermal coal, or the production of energy from coal;
9. which are engaged in activities aimed directly or indirectly (e.g., support services) at producing gambling-related goods or providing gambling-related services (e.g., slot machines, casinos, etc.);
10. which are engaged in the production or trade of asbestos or its derivatives;
11. which are not working towards adhering to the guiding principles of so-called socially responsible investment (i.e. transparency, integrity and suitability) according to international governance standards (by way of example (i) human rights (as laid down in the Universal Declaration of Human Rights by the United Nations), (ii) International Labour Standards (ILO), such as harmful or exploitative forms of forced labor/ harmful child labor, and (iii) product safety (EU General Product Safety Directive)); or
12. which are directly linked to gambling.

The Fund’s investment strategy is continuously implemented as part of the investment process: Each investment opportunity will be reviewed as part of the due diligence process in light of the Fund’s investment strategy, in particular with regard to the investment exclusions. After an investment, i.e., during the holding period, the Fund will regularly monitor its portfolio companies and support them when and where deemed relevant.

Good governance practices are assessed through a checklist as part of every due diligence process prior to any investment made by the Fund. Such practices include, in particular, sound management structures, employee relations, remuneration of staff and tax compliance within the portfolio companies. Moreover, the Fund will conduct regular monitoring of the good governance practices in its portfolio companies during the holding period. If the Fund becomes aware of severe governance issues, it will investigate them and work with all parties involved to find an appropriate solution.

Proportion of investments

The Fund will invest fully in line with its investment strategy and investment restrictions, i.e., will only make investments which are aligned with its environmental and/or social characteristics. The Fund does not make and does not intend to make sustainable investments within the meaning of Art. 2 no. 17 SFDR or environmentally sustainable investments within the meaning of Art. 3 of Regulation (EU) 2020/852 (“EU Taxonomy”); hence, no portion of its investments will be aligned with the EU Taxonomy.

Monitoring of environmental or social characteristics

The Fund has an increased awareness on the impact of environmental or social characteristics on risk management and thus on the value potential of investments. Accordingly, the Fund undertakes to monitor (compliance with) its environmental and/or social characteristics on an ongoing basis. Prior to making an investment, the Fund assesses the attainment of its environmental and/or social characteristics with respect to every (potential) portfolio company. During the holding period, the Fund uses the sustainability indicator ‘No investments in the area of investment exclusions’ and collects respective data at portfolio company level in order to monitor the ongoing compliance with its environmental and/or social characteristics. Moreover, the Fund consults with the portfolio companies in regular intervals and will carry out further checks if there are indications of potential issues with the Fund’s ESG approach. External monitoring mechanisms are not in place.

Methodologies

The Fund applies qualitative assessments with respect to its environmental and/or social characteristics. The Fund conducts an initial assessment of such characteristics in the course of its due diligence process prior to any investment by providing its (potential) portfolio companies with a checklist. Through this checklist, the investment exclusions and good governance practices are identified and evaluated, and the results of such analysis are recorded. Based on the results of this assessment, the Fund identifies whether the environmental and/or social characteristics promoted by the Fund are met before making an investment.

During the holding period, the so conducted assessment forms the basis to measure and monitor if the characteristics are continuously being met. By using the sustainability indicator ‘No investments in the area of exclusions’, the Fund assesses and ensures the portfolio companies’ ongoing compliance with its investment exclusions. Hence, the Fund measures and evaluates the attainment of its environmental and/or social characteristics on an ongoing basis.

Data sources and processing

Information is obtained from the respective portfolio companies. An external review or verification of this information will only be conducted if misrepresentations are suspected.

Limitations to methodologies and data

The data collected from the (potential) portfolio companies as well as any data supplemented by third party service providers or external experts is internally or externally verified only if and to the extent misrepresentations are suspected. Thus, it cannot be ruled out completely that false information may remain undetected in certain cases. Further, the data estimated might – by the very nature of estimations – not reflect the actual data situation at portfolio company level. Further limitations, in particular with regard to the accuracy of the data and reliability of the data sources used, are currently not foreseeable. As the Fund’s investments are made for several years, the Fund considers it a priority to establish and maintain a trustful working relationship with its portfolio companies in order to ensure data quality and compliance with the environmental and/or social characteristics promoted by the Fund.

Due diligence

In order to attain the aforementioned environmental and/or social characteristics, the Fund carefully selects its portfolio companies during the investment decision-making process. The Fund conducts a due diligence on every (potential) portfolio company. As part of this due diligence, the Fund carefully reviews how a (potential) investment relates to the environmental and/or social characteristics promoted by the Fund. The Fund incorporates exclusion (negative screening with respect to its investment exclusions) as well as good governance aspects during the decision-making process. This assessment is conducted by using a checklist and, where required based on the inherent ESG risk of the portfolio company, through an enhanced analysis. An internal or external review or verification of the information obtained will only be carried out if misrepresentations are suspected.

Engagement policies

Engagement is in general not part of the environmental or social investment strategy of the Fund. The Fund will respond with individual measures when becoming aware of ESG-related incidents or controversies at portfolio company level.

Designated reference benchmark

No index has been designated as a reference benchmark to meet the environmental or social characteristics promoted by the Fund.