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In brief: Inflexion’s ESG-linked management ratchet

The management team at Netherlands-headquartered Enviolo has a direct economic incentive to hit ESG-related goals.

European private equity firm Inflexion tells us that management at its latest portfolio addition, a company that makes parts for e-bikes, has some sort of sweet equity ratchet linked to ESG targets.

The firm is not letting on much more than that, but New Private Markets understands that targets for the management team of Netherlands-headquartered Enviolo relate to environmental impact, health and safety, governance and supplier management. Consulting firm ERM advised on ESG due diligence for the deal. The value of the buyout was $245 million, according to a source with knowledge.

We’ve considered the benefits of an ESG-linked management ratchet before, courtesy of lawyers from Travers Smith, but this is the first real-world example to come across our desk. Let us know, if you are aware of others on toby.m@peimedia.com.