APG and TIAA award €475m impact investing mandate to Arcmont

Dutch pension asset manager APG and TIAA have given the private debt firm Arcmont Asset Management (Arcmont) a €475m mandate between them to invest in impact funds. The investment will be centred on four key themes: climate, health, education and sustainable economic growth.

APG is making the investment on behalf of its clients ABP, bpfBouw and PPF APG, which should contribute to the goal of ABP, APG’s majority owner, of having €30bn in impact investments by 2030.

Menno van den Elsaker, head of alternative credits at APG said: “At APG, we want to be at the forefront of impact investing. Through this partnership with Arcmont, we can deliver attractive investment returns for our clients ABP, bpfBouw and PPF APG, while contributing to their ambitious impact objectives.”

APG has been expanding its investments in private credit in recent years. For example, in 2022 and 2024, a total of more than €1bn was invested on behalf of ABP and Bpf Bouw in a fund managed by ILX, an asset manager specialising in loans in emerging markets.

Impact mandate

Arcmont is the UK-based affiliate of Nuveen, the investment manager for TIAA, an institutional investor with global holdings focused on retirement services.

To date, Arcmont has committed over €33bn in total across more than 420 transactions covering 12 European countries, since it was established in 2011. It was acquired by Nuveen in 2023, which kept Arcmont’s pre-existing leadership team in place.

Nuveen launched an impact credit strategy in October 2024, having raised €155m to be focused on social inequality reduction and combatting climate change impacts.

As such, Arcmont’s new impact lending strategy, developed in collaboration with Bridgespan Social Impact, will provide debt financing to companies whose products and services seek to address critical environmental and social challenges.

Wen-Fu Wu, deputy chief investment officer and head of fixed income at TIAA, said: “The approach of this new strategy aligns nicely with our aim of being responsible stewards of our participants’ capital by seeking diversified, long-term performance while driving positive change.”

Anthony Fobel, chief executive officer of Arcmont, said the mandates will allow investors to contribute to a sustainable future, adding that Arcmont is one of the first private debt firms of its size to launch an impact lending strategy.

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