AllianzGI’s Impact Private Credit strategy reaches EUR560mn total commitments at first closing

  • With EUR 560mn commitments received from leading European institutional investors, including Allianz, APG Asset Management, the European Investment Fund (EIF), and La France Mutualiste as anchor investors, AllianzGI’s Impact Private Credit strategy (IPC)1 has reached more than half of its target size within a few months.
  • IPC offers impact direct lending solutions (mostly unitranche) to European SMEs and small to mid-market companies whose core business is to provide solutions to crucial environmental and social challenges.
  • IPC’s investing value proposition is based on AllianzGI’s proprietary impact framework and the funds are classified Article 9 under Sustainable Finance Disclosure Regulation (SFDR).

05.09.2024 | Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, today announced the first close of its Impact Private Credit (IPC) strategy after securing EUR 560mn total commitments from leading institutional investors including Allianz, APG Asset Management, the European Investment Fund (backed by the European Union’s InvestEU initiative) and La France Mutualiste across two funds2. With these commitments, IPC has rapidly reached more than half of its target size. The funds are classified article 9 under the Sustainable Finance Disclosure regulation (SFDR)3.

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. 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. On the more environmentally focused investments, solutions include clean and efficient energy, resource efficiency, sustainable food and agriculture. On the social side, solutions are oriented around access to quality, accessible and affordable healthcare and education.

The IPC strategy is managed by a team based in London, Zurich and Paris. It is a co-creation between the Development and Impact Credit team headed by Nadia Nikolova and the Impact Strategy team led by Diane Mak. This partnership aims to achieve market-rate financial returns while delivering an ambitious impact investing value proposition based on AllianzGI’s proprietary impact framework. Dedicated impact experts work independently from the investment team to assess investment opportunities for positive, significant and measurable impact4 . IPC will deliver transparent impact and sustainability reporting, accompanied by broader impact management throughout the lifecycle of the investments. 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.

Alexandra Tixier, Lead portfolio manager of IPC commented:
“The first closing of our Impact Private Credit strategy highlights our added value in the current European direct lending market offering, especially for first time funds. Although impact investing through private debt is relatively new, it is gaining momentum due to regulatory changes, next-gen trends and societal pressure to “do good” with investments. As investors increasingly prioritise engagement towards net-zero, more responsible investments and better transparency, impact investing is emerging as a crucial new allocation trend in private debt.

Matt Christensen, Global Head of Sustainable and Impact Investing, remarked:
“ 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”.

Edouard Jozan, Head of Distribution Europe added :
“Client interest in impact investing continues to grow and evolve across private markets, expanding from the equity focus in prior years to the credit market of today. Allianz Global Investors is keen to provide its clients with new vehicles focused on investing in solutions addressing environmental and social challenges which also meaningfully integrate impact measurement and management throughout the investment process.”

Marjut Falkstedt, Chief Executive of the EIF commented:
“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 & Marcin Lenart, Expert Portfolio Manager – Alternative Credits at APG Asset Management commented:
“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. With AllianzGI we have found a partner that 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”.

AllianzGI offers a broad range of investment solutions and manages around EUR 96bn* in private market assets.

For further information please contact:

Marion Leblanc-Wohrer
Tel +33 6 85 15 74 54
Email: marion.leblancwohrer@allianzgi.com

 

About Allianz Global Investors

Allianz Global Investors is a leading active asset manager with over 600 investment professionals in over 20 offices worldwide and managing EUR 555 billion in assets. We invest for the long term and seek to generate value for clients every step of the way. We do this by being active – in how we partner with clients and anticipate their changing needs, and build solutions based on capabilities across public and private markets. Our focus on protecting and enhancing our clients’ assets leads naturally to a commitment to sustainability to drive positive change. Our goal is to elevate the investment experience for clients, whatever their location or objectives.

*Data as at 30 June. Total assets under management are assets or securities portfolios, valued at current market value, for which Allianz Global Investors companies are responsible vis-á-vis clients for providing discretionary investment management decisions and portfolio management, either directly or via a sub-advisor (these include Allianz Global Investors assets which are now sub-advised by Voya IM since 25 July 2022). This excludes assets for which Allianz Global Investors companies are primarily responsible for administrative services only. Assets under management are managed on behalf of third parties as well as on behalf of the Allianz Group.

About the European Investment Fund (EIF)

The EIF is part of the European Investment Bank Group. Its main mission is to support small and medium-sized European businesses by helping them access financing. It designs and implements venture capital and private equity operations, as well as guarantee and microfinance instruments specifically for SMEs. In this role, the EIF promotes the EU's objectives of supporting innovation, research and development, entrepreneurship, growth and employment.

About InvestEU

The InvestEU program provides the European Union with crucial long-term financing by mobilizing substantial public and private funds for a sustainable recovery. It generates additional investment in line with key European priorities, such as the European Green Pact, the digital transition and SME support. The InvestEU program brings EU financial tools together to support investment by making project financing simpler, more efficient and more flexible. The program comprises three elements: the InvestEU fund, the InvestEU advisory platform and the InvestEU portal. The InvestEU fund is implemented through various financial partners. They will invest in projects using the EU budget guarantee of €26.2 billion, which is intended to mobilize at least €372 billion in additional investment.

About APG

As the largest pension services provider in the Netherlands APG looks after the pensions of 4.6 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €577 billion (June 2024) in pension assets. With approximately 4,000 employees we work from Heerlen, Amsterdam, Brussels, New York, Hong Kong, and Singapore. www.apg.nl

1 Private Debt investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only. This is a marketing communication. Please refer to the information document of the AIF before making any final investment decisions.
2 Composed of a multi-investors fund and a single-investor fund.
3 Impact Private Credit has been classified as an Article 9 under SFDR: EU Sustainable Finance Disclosure Regulation. Information accurate at time of publishing. Investors should take into account all the characteristics and/ or objectives of the fund as described in its legal Fund documentation.
4 https://www.allianzgi.com/en/insights/outlook-and-commentary/investing-for-meaningful-impact-in-private-markets

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