UK Stewardship Code and Shareholder Rights Directive Disclosure

UK STEWARDSHIP CODE AND SHAREHOLDER RIGHTS DIRECTIVE DISCLOSURE – January 2020

Under Rule 2.2.3R of the FCA’s Conduct of Business Sourcebook and similarly under the Shareholders’ Rights Regulations 2019, East Lodge Capital Partners LLP (the “Firm”) is required to include on this website a disclosure about the nature of its commitment to the UK Financial Reporting Council’s (“FRC”’) Stewardship Code (the “Code”) and the nature of its commitment to the EU Shareholder Rights Directive (the ” SRD II Code”) or, where it does not commit to the Codes, its alternative investment strategy. Both Codes are voluntary and sets out a number of principles relating to engagement by investors with across asset classes invested in. For this purpose, “stewardship” is defined as “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, which leads to sustainable benefits for the economy, the environment and society”.

The Firm’s strategy is to seek to achieve attractive risk-adjusted returns whilst limiting volatility by investing in global structured and corporate credit opportunities as well as investing in commercial real estate loans and other direct lending opportunities whilst also overlaying a hedging strategy.  This strategy does not involve the Firm taking an activist shareholder approach.

The British Private Equity and Venture Capital Association’s (“BVCA”) published a response in March 2019 to the FRC’s proposed revision to the UK’s Stewardship Code in the context of private equity (“PE”) and venture capital (“VC”) firms. The BVCA stated that in their view the Stewardship Code is less applicable to such firms and hence there would be limited benefits for such firms in adopting it. Furthermore, it would result in duplicate reporting requirements given the existence of other similar codes across the industry.

The Firm shares the same view as expressed above in connection with the strategies it pursues and therefore it has chosen not to commit to the Code.  It should be noted however, that the Firm internally adopts the principles from the UN Principles for Responsible Investment (“UN PRI”) which are fully embedded within its ESG Policy and underlying investment processes. Compliance with the PRI Principles forms a key basis for engagement with the Firm’s investors, investee companies and other stakeholders.

Alistair Lumsden, Chief Executive Officer & Chief Investment Officer

Mr. Lumsden is the Chief Executive Officer and Chief Investment Officer of East Lodge Capital Partners LLP (“ELC”). He chairs ELC’s Investment Committee and is a member of the firm’s Management Committee and Risk Management Committee. Mr. Lumsden has over 25 years of investment experience, and he is responsible for overseeing all investment decisions for the firm. Prior to founding ELC, Mr. Lumsden was the Chief Investment Officer of Asset Backed Securities at CQS and a member of CQS’ Executive Committee and Risk Management Committee. While at CQS, Mr. Lumsden established the firm’s global Asset Backed Securities business for which he built an 11-person team and oversaw $3.2 billion in assets, including the $2.3 billion CQS ABS Fund and ~$900 million in custom mandates for institutional investors. Prior to CQS, Mr. Lumsden was an Executive Director and Senior Asset Manager of the Vehicle Management Group at Rabobank International, where he was a founding member of a three-person management team responsible for structuring, launching and running a third party Structured Investment Vehicle called Tango along with Messrs. Swallow and Towers. He helped grow Tango to a $10 billion business before leaving to join CQS in 2006. Mr. Lumsden began his career at Abbey National Treasury Services in 1993 where he was responsible for developing the firm’s US Subprime strategy, and later took over management of global mortgage products and other ABS strategies, a $15 billion business. Mr. Lumsden obtained a BSc (Hons) 1st Class in Business and Management Studies from the University of Bradford.

Jason Etherington, Chief Operating Officer

Jason Etherington is the Chief Operating Officer of East Lodge Capital Partners LLP (ELC). Having spent many years in senior leadership roles, including 27 years in the British Army, Mr. Etherington brings considerable strategic and operational experience to East Lodge. As Chief of Staff, Mr. Etherington leads all non-investment related departments within the firm and works closely with Mr. Lumsden, CEO & Chief Investment Officer, on the development of the firm’s growth strategy. Most recently, Mr. Etherington was the Managing Director for the Security Division of Atalian Servest, one of the world’s largest privately-owned facilities management groups. In this role, he was responsible for 1500 individuals serving a variety of significant clients nationwide. Mr. Etherington’s innate ability to build relationships helped to deliver high profile clients such as the Foreign and Commonwealth Office, the Scottish Courts and the Royal British Legion. Prior to joining Atalian Servest, Mr. Etherington served in the British Army from 1992 to 2016, attaining the rank of Colonel. Mr. Etherington’s long and distinguished military career culminated in his recognition in the 2016 New Years’ Honours List where he was awarded an OBE by Her Majesty the Queen. During his time in the British Armed Forces, Mr. Etherington led the Attack Helicopter force and was responsible for the training, readiness and operational deployments of up to 3,000 individuals in the UK, Afghanistan and Libya. Prior to this, Mr. Etherington served as the Chief Planner for Joint Force Headquarters, the organization responsible for emergency deployments worldwide. In this capacity, he worked with the British High Commission in Nairobi, and led the contingency planning for the potential evacuation of all British nationals during the election period in 2013. He has also served as a Regimental Commanding Officer, a Chief of Staff of one of only two Army logistic brigades and the Chief Planner for a multinational organization in Kosovo. As a military aviator and Apache helicopter pilot, Mr. Etherington flew combat missions in support of the UK, the US and other NATO forces in Afghanistan, and as the UK’s most senior attack helicopter leader, he was responsible for Aviation Risk Management for the entire attack helicopter fleet. This involved conducting regular briefings to senior military and civilian leaders of several countries’ militaries including the UK, the US, Italy, France, Germany and Columbia. He was also deployed to several regions of conflict, including Bosnia, Kosovo, Iraq, Afghanistan and Libya. Mr. Etherington holds a MA in Defense Studies/Technology from Cranfield University and received the Cranfield University award for Outstanding Performance.

Ken Towers, Chief Financial Officer

Mr. Towers is Chief Operating Officer at ELC and is a member of the Firm’s Management Committee. He has over 24 years of experience in the financial services industry, over half of which has been in structured credit. Prior to joining ELC, Mr. Towers spent close to 14 years with Rabobank where he was most recently Managing Director, European Head of Balance Sheet Management (Treasury) and a bank nominated Trustee Director of Rabobank’s London employee pension fund. During his time at Rabobank, Mr. Towers was a founding member of a three-person management team responsible for structuring, launching and running a third party Structured Investment Vehicle called Tango, along with Mr. Lumsden. Mr. Towers also held positions within Treasury, Financial Markets and Corporate Banking at Rabobank, with responsibility for Balance Sheet Management, Liability Management, Portfolio Management, Structuring, and Governance. Previously, Mr. Towers spent 8 years at Gordian Knot, where he served initially as a systems designer before moving on to lead the Risk Management and Treasury functions. Mr. Towers holds a BSc (Hons) 1st Class in Computer Science from Swansea University.

Karyn Geringer, Global Head of Business Development

Ms. Geringer is Head of Marketing and Business Development at ELC, and a member of the firm’s Management Committee. She has over 19 years of experience in the financial services industry. In her role, she has overall responsibility for the firm’s Marketing, Business Development and Investor Relations efforts globally. Prior to joining ELC, Ms. Geringer was a Principal and Head of Marketing, Americas at CQS, a London-based multistrategy firm. While at CQS, she implemented a marketing and client service plan for the Americas region and led a team that was responsible for growing the firm’s U.S. client base five-fold. Prior to joining CQS, Ms. Geringer was co-Head of Marketing for North America at GLG Partners where she helped build and develop the firm’s institutional client base in the U.S. and Canada. Before GLG, she was a Senior Vice President at Pequot Capital Management responsible for marketing and client service in North America, and prior to this, she was a Vice President at Credit Suisse where she was a member of the capital introductions team. Ms. Geringer joined CSFB in 2001 as a coverage salesperson in the Equities Division where she focused primarily on hedge funds. Before joining CSFB, Ms. Geringer was a member of Donaldson, Lufkin & Jenrette’s Private Fund Group where she was responsible for analysing and marketing private equity funds. From 1994-1999, Ms. Geringer served as an Intelligence Officer in the United States Navy attaining the rank of Lieutenant. Ms. Geringer holds a BS in Political Science from the United States Naval Academy, and an MBA in Finance from Columbia Business School.