Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Investment Company of the Year Award (2017 and 2018 nominations)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disrupted the global economy and markets, adversely affecting several investments and the industries in which they operate.
• Corporate credit fundamentals deteriorated due to the pandemic, resulting in losses in the CLO portfolio and real estate investments.
• Challenges in consummating deals and launching businesses in a remote-work environment.

Mitigation Strategies

• Obtained a 10-year $250 million revolving credit facility, replacing the previous shorter-dated facility and lowering its annual cost.
• Repurchased $50.3 million of shares, accretive to NAV per share.
• Returned $36.4 million to shareholders in dividends.
• TFG Asset Management and Brandon Baer launched Contingency Capital, a multi-product global asset management business.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC Code of Corporate Governance

Awards & Recognition

• Investment Company of the Year Award (2017, 2018)

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Weakness in the British Pound affecting Equitix valuation.
• Decrease in market multiples for comparable asset managers.
• Project-specific delays in Hawke's Point investments due to flat gold prices.
• Weakness in technology and equity capital markets.
• Broad sell-off in growth and technology equities.
• Losses in biotechnology exposures.

Mitigation Strategies

• Increased credit facility from $250 million to $400 million.
• Completed a $42.0 million share repurchase.
• Diversification of investments across asset classes, investment vehicles, durations, and investor types.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Wellbeing

Social Achievements

• Launched Tetragon in the Community initiative, partnering with local organizations in London and New York to provide educational enrichment and community beautification projects.
• TFG Asset Management sponsored One Young World’s Entrepreneur of the Year Award 2023.
• Acasta Partners launched the Acasta Partners Further Education Scholarship.
• The Equitix Foundation raised over £120,000 for three charities.

Climate Goals & Targets

Environmental Challenges

• Market uncertainty driven by persistent inflation and aggressive central bank rate hikes.
• Solvency crisis gripping U.S. regional banks.
• Weakening U.S. jobs market.
• Recovery in public valuations.
• Emerging pressures in global shipping and supply chains.
• Growing geopolitical tensions.

Mitigation Strategies

• Defensive capital preservation.
• Diversified investment approach focusing on low-correlation assets.
• Active cash management to cover future commitments and capitalize on opportunities.
• Adaptive approach to portfolio construction to navigate uncertain environments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC Code of Corporate Governance

Third-party Assurance: KPMG Channel Islands Limited

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Market challenges in 2022 included geopolitical crisis, supply chain stresses, and aggressive interest rate hikes by central banks, leading to losses in various asset classes.
• In March 2023, losses in U.S. regional bank investment portfolios raised solvency concerns and prompted deposit flight, resulting in bank failures and tighter lending standards.
• Concerns about regional access to credit and a potentially slowing economy, particularly impacting the smaller-cap segment of the U.S. market.

Mitigation Strategies

• Tetragon's diversified investment strategy across credit, equity, interest rate, inflation, and real estate cycles helped mitigate some of the market challenges.
• Opportunistic portfolio construction allowed Tetragon to invest in situations where other investors were rebalancing unbalanced, illiquid, or impaired portfolios.
• Share repurchases of $25.1 million in April 2023.

Supply Chain Management

Climate-Related Risks & Opportunities