Insig AI enters binding deal with investment manager CarVal

Data science and machine learning technology company Insig AI announced on Friday that alternative investment manager CarVal Investors has entered into binding heads of terms with its wholly-owned subsidiary Insig AI Corporation, for Insig AI to combine its environmental, social and governance (ESG) tools with CarVal's proprietary ESG risk scoring methodology.

The AIM-traded firm said that would then be applied to the future ‘CarVal Clean CLO’ product line as the first deployment of the companies’ jointly-developed ESG technology.

It said the new technology would be the first of its kind in fixed income, enabling asset managers to develop and execute a high-performing, data-led ESG investing strategy by providing “transparent and evidence-based” ESG scoring and interrogation, while also allowing for comparison to relevant benchmarks.

As it announced on 20 July, Insig ESG was also currently being validated by a number of other potential asset manager clients in the UK and internationally.

“We are excited to be working in collaboration with CarVal to support the launch of this groundbreaking tool,” said chief executive officer Steve Cracknell.

“When launched, the CarVal Clean CLO platform will underscore the powerful role that our innovative, jointly developed ESG scoring and interrogation tool can play in enabling both investment and asset managers to develop and execute a data-led ESG investing strategy, for which there is rapidly growing demand at present.

“We look forward to supporting CarVal with any further ESG-focused products they launch.”

At 0923 BST, shares in Insig AI were up 7.9% at 84.7p.