AllianzGI raises €560m for impact private credit strategy
Allianz Global Investors has raised €560m (£472m) at the first close of its impact private credit strategy, reaching more than half of its target size within a few months.
The programme, which comprises the Allianz Income and Growth and Allianz Global Artificial Intelligence funds, has secured commitments from a range of institutional investors including Allianz, APG Asset Management, the European Investment Fund (EIF) and La France Mutualiste.
Allianz Global Investors’ impact private credit strategy offers impact direct lending solutions to European SMEs that are providing solutions to environmental and social challenges. It focuses on three core themes: climate change, planetary boundaries and inclusive capitalism.
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“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,” said Alexandra Tixier, lead portfolio manager of the impact private credit strategy.
“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.”
The 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.
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The two funds have an impact-linked performance fee mechanism, meaning that part of the returns are related to the achievement of specific impact targets in addition to the requirement of the financial hurdle being met.
“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,” said Marjut Falkstedt, chief executive of the EIF.
“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.”
Read more: AllianzGI raises €300m in first closing of new private credit impact fund
