Investment & ESG Criteria

Sustainability Framework:

  • 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
  • Gambling
  • Pornography
  • 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).