Apollo, Persefoni and MSCI launch private credit ESG data platform

Private credit firms looking to monitor their borrowers’ ESG performance have a new tool at their disposal. MSCI has announced Private Company Data Connect, a platform that enables GPs to access their portfolio companies’ sustainability and climate data and disclosures.

The product is “designed to drive transparency and a common language for investors in private markets”, according to a statement from MSCI. The firm says it can help GPs execute due diligence, respond to reporting obligations and develop sustainable value creation strategies.

The platform uses the ESG Integrated Disclosure Project template as the basis for company disclosures. ESG IDP launched in November 2022 with the intention of harmonising ESG disclosures in the private credit and syndicated loan markets. It has released a freely available template – downloadable from the website – designed to be completed by borrowers and shared with lenders.

ESG IDP is led by the Alternative Credit Council, the Loan Syndications and Trading Association, and the Principles for Responsible Investment. Founding members also included asset managers Apollo Global Management and Oak Hill Advisors, both of which sit on the executive committee. It is supported by the ESG Data Convergence Initiative, which has been pursuing a similar goal in the private equity arena.

The product also has carbon accounting capabilities, for which it relies on an AI-powered carbon measurement and reporting tool produced by Persefoni.

“By working with MSCI and Persefoni to support the establishment of a platform that leverages the ESG IDP, we’re able to better respond to the unique challenges and opportunities of the private markets,” said Michael Kashani, Apollo’s head of ESG credit chair of the ESG IDP executive committee. “Increasing standardization and driving transparency on material ESG factors reinforces our focus on value creation and meeting stakeholder needs.”