YFM Equity Partners has invested £3 million growth capital into Integrum ESG as part of a £3.4m total round.
The AI-driven platform provides live ESG data insights for asset managers and their advisors.
The investment will support London-based Integrum ESG’s new growth phase as it seeks to meet increasing demand for its platform, in light of growing regulatory and socio-political pressures and the growing need for investors to receive more transparent and timely ESG data.
Created in 2019, the Integrum ESG Platform is cloud-native SaaS which provides an objective ESG scoring and benchmarking tool for both public and private market asset managers and their advisors, utilising proprietary artificial intelligence, machine learning and natural language processing technologies.
The data solution is the brainchild of founder Shai Hill – a former equity analyst for asset management and securities firms – who recognised how ESG considerations were becoming increasingly financially material, and yet the existing ESG ratings available for investors were entirely opaque.
Integrum ESG has been designed to address this issue by capturing, verifying and displaying the most recent granular ESG data for asset managers to analyse and assess, helping them to make timely and insightful investment decisions.
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The company’s proprietary ML models capture and pull in a variety of data from company-disclosed sources, news and social media. This data is then reviewed by Integrum ESG’s team of research analysts before being uploaded onto the Integrum ESG Platform.
“From the outset, YFM recognised and supported our vision of helping to create a world where investors can understand the importance of sustainability,” said Hill.
“They were excited by our business model, which blends AI with human intelligence to support professional investors, and have consistently provided expert guidance, underpinned by their years of experience in helping tech-driven companies to grow. We look forward to embarking upon the next phase of our growth journey with the backing of the YFM team.”
YFM partner David Wrench added: “There is an increasing need for asset managers, in both private and public markets, to accurately capture, benchmark and report ESG data at the portfolio level.
“However, the traditional model of manually collating information, then filtering, reviewing, assessing and benchmarking it against ESG regulations is expensive, time consuming and subject to human error and information oversight.
“Moreover, the approach of relying on third-party black box ratings is at increasing risk of regulatory challenge. Integrum ESG has developed a game-changing solution, through the development of proprietary technology and a deep understanding of the needs of their market.
“We are certain that demand will continue to grow for their innovative platform.”