Responsibility

We grow and evolve together.

Those who appreciate value, create value.

Lead and inspire

We are operators. Where we advise, we manage and mould too. Responsibly, as equals and always with the employees. As comprehensively and as much in the long term, so to speak, as is required by the company to get reoriented. We like challenges and changes and to inspire each other with new ideas.

Invest and develop

palero group invests in companies to increase their value. palero capital and palero experts advise to bring this about.

The investment companies are independent and consist of a selected group of institutional investors. It offers equity of up to 20 million Euros per transaction.

It’s not just about developing companies, but about personal development too. Always.

Safeguard and improve

We want to safeguard jobs. We therefore take transparent and reliable decisions with the people in charge, in line with the industry dynamics. Nevertheless, we wish to make better use of the company’s potential, increase turnover and profitability with as much efficiency and pragmatism as possible.

Strategically expediently at that for the success to last in future as well.

Respect and trust

To think in terms of sustainability is to think ahead. Appreciation and recognition for performance rendered. Giving liberties to colleagues and reposing trust in them. Identifying and fostering the strengths of teams. Sustainable success can only come when we work together. This sets us distinctly apart from traditional private equity firms.

palero is a member of Principles for Responsible Investment Initiative (PRI) of the United Nations.

ESG

ESG Report

Palero was one of the first German funds to prepare its 2025 group-wide ESG report in accordance with ESRS and have it audited in accordance with ISSA 5000. Transparency is one of the pillars of a modern corporate group. It fosters trust and cohesion among all stakeholders. That is why we report on the palero Group’s material sustainability issues—for the first time, across the entire portfolio, in accordance with the new European Sustainability Reporting Standard (ESRS) for the 2025 reporting year.

The report was externally audited in accordance with the ISSA 5000 auditing standard. Palero is thus among the first private equity firms in Germany to have an externally audited ESG report in accordance with ESRS and among the first to transparently disclose the principal adverse impacts on sustainability for its portfolio in accordance with the EU Sustainable Finance Disclosure Regulation (SFDR).

You can find our 2025 ESG Report here: ESG Report 2025 (German)

Sustainability as our Corporate Compass

Our corporate goals are to create value for all stakeholders, including through responsible investing and sustainable business practices. Palero signed the United Nations Principles for Responsible Investment (PRI) as early as 2011 and has been committed to the six principles for responsible investing ever since. Even back then, we were one of the first funds to take this step—long before ESG became trendy, then the norm, and most recently was watered down by regulation.

In 2025, we further developed our group-wide ESG strategy and defined five focus areas.

A responsible investment strategy in line with the PRI, SFDR Article 8, and the Science Based Targets Initiative (SBTi) standard for financial institutions.
Corporate governance with clear ethical standards.
Fair working conditions and an attractive work environment for our own employees.
Climate protection with a science-based decarbonization pathway in line with the 1.5-degree target.
Effective ESG governance for efficient processes, clear responsibilities, and transparent management.

The foundation for the ESG strategy was the double materiality analysis according to ESRS, which was conducted for the entire palero Group, including all portfolio platforms. In addition, we align ourselves with the SFDR and the United Nations Sustainable Development Goals (SDGs). Our focus and contribution center on the following three SDGs:

Goal 8: Decent Work and Economic Growth
Goal 12: Responsible Consumption and Production
Goal 13: Climate Action

We measure the effectiveness of the ESG strategy using a structured system of key performance indicators. For each focus area of the strategy, we have defined measurable goals with specific target values. We monitor progress and report on it in our annual ESG report.

Sustainability in the Portfolio

The ESG strategy encompasses all phases of the palero Group’s value chain—from investment decisions through active portfolio management to divestment. It sets binding guidelines for all portfolio companies and ensures that environmental, social, and governance-related aspects are systematically incorporated into business decisions.

We are committed to responsible corporate governance and reliable ethical business standards for all of the palero Group’s business partners.

Some of our portfolio companies are manufacturing firms with high energy demands and partial dependence on fossil fuels. The use of renewable energy, greater energy efficiency, and the reduction of emissions intensity are therefore key performance indicators for decoupling economic growth from resource consumption.

Palero also supports its portfolio companies through transformation processes, which may include restructuring. In doing so, we act fairly, respectfully, and in close dialogue with employees and employee representatives. For us, social sustainability is a key success factor in the transformation of our portfolio companies.

Additional documents:

– ESG Report 2021–2022

– Renumeration Policy