TMF’s Sustainability Framework contributes to the objectives of the European Green Deal.
Our ESG analysis substantiates the sustainability of a business model and is therefore an integral part of TMF’s risk management.
For our borrowers to successfully pursue their growth strategies, solid governance must be in place.
Our ESG analysis gives particular weighting to governance and focuses on incentives to meet E&S criteria.
In accordance with the United Nations’ Sustainable Development Goals all our borrowers must contribute towards at least one goal.
TMF uses three ESG covenants to promote the transition towards a more sustainable economic system: covenant breaches are penalized through compulsory donations to foundations that are dedicated to achieving these objectives.
Tradition Meets Future shall not provide financing to companies whose business activity consists of:
The financing and production of, and trade in, weapons and ammunition of any kind
The production of, and trade in, tobacco, distilled alcoholic beverages, other non-alcoholic recreational drugs and related products
Oil and gas or metals and mining exploration, extraction or operations
The financing and production of nuclear energy
Any activity that violates human rights or animal dignity
Any illegal economic activity
Eligibility requirements for borrowers are:
The company should be in operation for at least 2 years.
Existing products/services with established product-market-fit and paying clients.
Minimum revenue growth of at least 20% p.a. (y-o-y).
Revenues during the last twelve months should be at least €2m.
Sound governance structures that allow for fast growth.
Equity financing from qualified investors (VC funds, family offices, and/or corporate venture arm).