fund finance

Uncertainty about the use of proceeds poses an issue for NAV lenders looking to manage ESG risks.

Lenders are focusing on the sponsor to understand ESG risks, rather than the underlying investments in their portfolio, according to experts.

If scaled, nature-based solutions have the potential to account for 37% of necessary climate mitigation goals. Carbon offset trading holds the key.

Alcentra's latest whitepaper charts the development of the sustainability-linked loan market, and quizzes borrowers on their ESG practices.

The Singapore-based healthcare investors was an early mover in ESG-linked fund finance: it is once again breaking new ground.

Five banks acted as joint sustainability co-ordinators on the facility, secured by PAG for its private credit business.

A handful of firms – including Carlyle, EQT, Eurazeo, Cinven and ICG – have been self-imposing financial incentives for improved sustainability performance. Astorg’s facility is among the largest.

The facility is comparable to the one sourced for the firm's European PE funds, and will be tied to three ESG KPIs.

Partners Group has deployed €750m in sustainability-linked loans over the last 12 months as engagement picks up in Europe and the US.

The interest rate will be linked to sustainability performance target.