ESG Investor’s weekly round-up of news on funds designed to meet sustainable investing criteria.
Stockholm-headquartered private equity firm EQT has launched its second ESG-linked subscription credit facility (SCF), within the infrastructure business line, in partnership with a syndicate of global financial institutions. The facility, currently at €2.7 billion with a limit of €5 billion is backed by a syndicate including BNP Paribas and SEB, and will be coupled with an innovative pricing model designed to inspire portfolio companies to improve three performance in distinct ESG related areas. “A bridge facility is an excellent way of rewarding and encouraging the portfolio companies’ advancement in ESG-related areas, and by accelerating their progress we make a very tangible impact,” said Lennart Blecher, deputy managing partner and head of real assets at EQT.
The Kotak ESG Opportunities Fund has been launched by Kotak Mahindra Asset Management, focusing on ESG factors. Closing for subscription on December 4, the fund is an open-ended equity scheme for investors seeking long-term capital growth alongside investment into the portfolio of companies following ESG criteria. It will invest in companies based on financial parameters and non-financial factors as part of its research process. “Kotak ESG Opportunities Fund will focus on the ESG principles and disclosures of the investing company with the flexibility of investing across market capitalisation range with the aim to create sustainable wealth for our investors,” said Harsha Upadhyaya, CIO for equities and president at KMAMC.
US private equity firm Bain Capital’s second social impact fund has raised US$800 million, more than double the size of its predecessor. The Bain Capital Double Impact Fund II, was registered with the SEC in August 2020, is expected to invest in North American mid-tier firms focused on sustainability, health and wellness, and education, and workplace development. Bain’s first social impact fund raised US$370 in 2017 from international investors. According to Preqin, global impact funds had raised just US$14.6 billion by November 20, down from US$76.2 million in 2019.
Mediolanum International Funds (MIFL) has announced the launch of their Global Impact Fund as part of its Best Brands range. Designed to invest in companies whose products and services are providing solutions to global challenges, the fund focuses on key themes including social inclusion and education, environment and resource needs, healthcare and quality of life and the ‘base of the pyramid’ concept, meaning it aims to address the needs of the poorest four billion of the world’s population. The fund will invest in a diversified portfolio of global equity securities through an active multi-manager approach. Initially, the managers in the fund will be Baillie Gifford and Federated Hermes. “Based on client feedback, we have leveraged wide-ranging expertise to create bespoke, next-generation impact investment product,” states Christophe Jaubert, chief investment officer and head of research multi-management at MIFL.
A UK-based Blue Impact Fund will be launched during this week’s Natural Capital Finance and Investment Conference, focused on ocean recovery, resilience and the use of nature-based solutions. Run by Finance Earth, a UK-based environmental impact investment advisor and fund manager, and developed in collaboration with the World Wildlife Fund and Sky Ocean Rescue, the fund will seek to invest in solutions to counteract climate change and sustainable and low-carbon efficient seafood production via marine and land-based aquaculture. It aims to provide investors with commercial returns while actively contributing to the goal of building a sustainable and thriving ocean economy. “There is potential to kick-start a green recovery in coastal areas dealing with the double whammy of the pandemic and the impact of long-term economic decline,” said Jamie Mansfield, co-founder and managing director of Finance Earth.