LCM Partners SOLO VII SLP ESG Report August 2024 Final

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Good Governance

Overview

During the reporting period, LCM assessed each origination

partner for alignment with the LCM Good Governance

Policy. LCM utilised its proprietary questionnaire to assess

whether SOLO’s origination partners promote good

governance practices, including the following themes:

• Sound management and employee relations

• Audit, risk and transparency

• Compliance

• Legal; and

• the Environment

Upon receipt of the completed Good Governance

Questionnaires the origination partners were evaluated

against the required governance standards as stipulated

by the LCM Good Governance Policy.

In addition, LCM performed checks on the business

activities of our partners, either through due diligence or

representations and warranties in funding documentation.

No issues or areas of concern were identified during the

reporting period.

LCM also performed appropriate public database searches

(such as RiskScreen) and no relevant information or areas

of concern were identified during the reporting period.

Portfolios are assessed for alignment with the LCM Partners

Exclusions Policy on an ongoing basis with origination

partners reconfirming their adherence during the reporting

period.

Representations and warranties given by our partners in

relation to topics such as audit, transparency and reporting,

risk management and compliance with relevant laws were

repeated upon each relevant utilisation request during the

reporting period. No material breaches were identified

during the reporting period.

Sound Management and Employee Relations

Under the sound management and employee relations

assessment, LCM reviewed areas such as board

composition, fair pay and executive remuneration,

employee turnover and diversity and inclusion.

LCM assesses these areas in the context of the size and

nature of the businesses, with no issues identified.

Audit, Risk and Transparency

Our partners’ responses to the audit, risk and transparency

section of the assessment were in line with expectations.

Our partners conduct reviews on their controls and

processes to identify areas of improvement, and have

shared their financial statements with LCM. One

originator changed auditor during the period, although this

was not deemed to be a concern.

Portfolio

SOLO’s origination

partners

Good Governance

Assessed

Compliance

Within the compliance section, the assessment of our partners covered policies and procedures that they have in place,

ensuring they have adequate liability insurance and comply with relevant legislation. No issues were identified during the

reporting period.

None of our partners had any business ethics disputes in the last year or involvement in violations of the UN Global

Compact or the OECD Guidelines of Multinational Enterprises.

Legal

Our partners fully met the legal assessment criteria within the Good Governance Questionnaire. Our partners implement a

robust filing and record-keeping system, and there were no ongoing material breaches, prior convictions, or ongoing

litigation related to governance areas (excluding those within the normal course of business).

Environment

In line with SOLO 2’s ESG framework, all of the origination partnerships complied with the LCM Partners Exclusions Policy,

confirming amongst other things that none of our partners are directly involved in the manufacture or sale of controversial

weapons or fossil fuels. Moreover, during the reporting period all but one origination partnership qualified as an SDI

investment, defined as a Portfolio having more than 50% of its deployment into investments with positive ESG attributes

according to our externally set taxonomy. The remaining Portfolio deployed less than 50% of its capital into investments

with positive environmental attributes.

While not a requirement for Article 8 funds under EU SFDR, following feedback from Limited Partners, we also incorporated

both the Principle Adverse Indicators (PAIs) and the ESG Data Convergence Initiative (EDCI) questions within the Good

Governance Questionnaire. In most instances, our partners were not able to provide responses as they do not currently

report on metrics such as scope one, scope two and scope three emissions or conduct a carbon footprint assessment.

Moving forwards, we hope that more of our Portfolios can share these metrics. In the meantime, for Portfolio 16 where we

were able to collect some of the PAI and EDCI data, a deep dive case study has been included on Page 4.

100%

Adherence to the

LCM Partners

Exclusion Policy

100%

No material breaches by

our origination partners

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