Allianz Global Investors (AllianzGI) has raised €560m at the first close of its Impact Private Credit Strategy (IPC), with commitments received from leading European institutional investors, including Allianz, APG Asset Management, the European Investment Fund (EIF), and La France Mutualiste as anchor investors across two funds.
With these commitments, IPC has rapidly reached more than half of its target size. The funds are classified as article 9 under the Sustainable Finance Disclosure Regulation (SFDR) 3.
AllianzGI said that through direct lending instruments, the IPC strategy “aims at accompanying the development of impact champions that are providing solutions to societal challenges with a focus on three core themes: climate change, planetary boundaries and inclusive capitalism”.
Its targeted companies – European small to mid-market corporates – seek to offer products or services that have a measurable positive impact on key environmental or social challenges, the manager added.
Additionally, in collaboration with anchor investors, AllianzGI structured the two funds with an impact-linked performance fee mechanism, linking a proportion of remuneration to the achievement of specific impact targets in addition to the requirement of the financial hurdle being met.
Marjut Falkstedt, chief executive officer of the EIF said: “We are pleased to support this new fund addressing the unique financing needs of impact-driven SMEs, which is aligned with the goals of the EIF and the InvestEU initiative. We are keen on supporting the growth of companies whose products, services, and business practices contribute positively to social and environmental matters. Together we are paving the way for a more sustainable future for all.”
Menno van den Elsaker, head of alternative credits, and Marcin Lenart, expert portfolio manager – alternative credits, at APG Asset Management, said: “Impact investing within the private credit market is still in its infancy but is developing rapidly. Given the ambitious impact goals of APG’s pension fund clients ABP and bpfBOUW, APG intends to be at the forefront of these developments and to establish leading impact investing practices.”
They said that as a partner AllianzGI “has one of the most advanced and thorough frameworks for assessing impact in potential private credit investments, ensuring the integrity of impact across the investment lifecycle and proper outcome impact metrics reported to investors”.
Matt Christensen, global head of sustainable and impact investing at AllianzGI, said: “The move from ESG to sustainability to impact is the trend of this decade. Impact investing is growing in waves across private markets, going from private equity in prior years to private credit as of today. For us, Impact is about supporting business models that through their products or services, make a positive, significant and measurable difference by meeting a proven need in society or by creating a clear environmental benefit”.
HSBC raises over $240m for new global infra debt strategy
Separately, the asset management arm of banking and financial services firm HSBC has so far raised over $240m (€189.6m) for a new global infrastructure debt strategy, as it puts team culture at the fore in its growth strategy.
HSBC Asset Management (HSBC AM) said the newly launched Global Transition Infrastructure Debt strategy invests in senior and second-lien debt, targeting mid-market borrowers in investment-grade countries in Europe, North America and the APAC region.
HSBC AM is now fundraising for a second vintage of its sterling mid-market senior direct lending strategy and is looking to launch global transition infrastructure debt and trade finance funds, as well as euro and dollar iterations for its mid-market loans strategy.
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