Andy Thomson
Pensioenfonds Detailhandel, a pension fund for the retail sector in the Netherlands, is backing the French fund manager’s impact lending strategy.
Managers of private debt funds are following the broadly syndicated market in their embrace of sustainability-linked loans. Credibility is on the line.
The report found significant variation in key performance indicators and the ambition level of sustainability performance targets.
'The integration of ESG factors into leveraged finance investing is continuing at pace, evolving to be much closer to that of public equity markets,' said ELFA chief executive officer Sabrina Fox.
ESG and sustainability are now being worked into deal documentation, but it may take a while before the private debt industry is seen to be truly making a difference.
Investors have concerns over what is happening in the broadly syndicated loan space. The private debt market must learn the lessons.
There’s no doubt that ESG is a major talking point within private debt but there’s considerable divergence among fund managers on the best way forward.
Issuance has shot up in the first half of this year, underlining the importance of best practice being applied.
Private debt managers have made considerable progress but, particularly in North America, there is more to be done.