Sustainability-led direct lender Colesco has raised more than €800m (£670.6m) in its first platform close, welcoming APG and Rabobank as investors.

Colesco’s invests in European mid-market businesses that contribute to the transition to a more sustainable society. It is committed to making over 50 per cent of sustainable investments with the remaining investments in companies who demonstrate a clear pathway to becoming a sustainable investment over time.

In addition, half of the performance-related fees are directly connected to realising the platform’s sustainability KPIs.

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Colesco generates alpha by selecting assets that yield attractive risk adjusted returns while meeting both the sustainability and credit quality bar.

Both APG and Rabobank are sustainability-led investors who share Colesco’s investment philosophy.

“The first closing of our platform represents a significant milestone, said Danny Vroegop, co-founder and chief investment officer at Colesco. “It demonstrates our added value in the current European direct lending market and highlights how specialised managers that align with specific themes can be very relevant to the current needs of investors.”

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Menno van den Elsaker, head of alternative credits at APG said: “Colesco stood out as one of the few managers able to deliver on our requirements with respect to sustainable investments and to deliver attractive investment returns for our clients in a responsible manner. With this investment we are especially excited to support the sustainable growth ambitions of companies in the Netherlands.”

Stefaan Decraene, chair of Rabobank’s managing board added: “This investment is a testament to the confidence we have in Colesco. Its strategy is in line with Rabobank’s mission to grow a better world together. By working with partners like Colesco, we can help to accelerate the sustainable transitions needed to future-proof the food and energy systems across the globe.”

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