Robeco has launched the Robeco Sustainable Senior Loan Fund.
The Rotterdam-based asset manager said the offering is one of the first funds to integrate sustainability into private debt investments.
The fund has so far raised €130m including a significant sponsor commitment from ORIX Corporation Europe, Robeco’s parent company.
It will continue to fundraise throughout 2023 and 2024. The fund is intended for professional and institutional investors.
It will be managed by the firm’s private debt investment team, including Erik Hylarides, Jan Hendrik Kroon, Glebs Ivanovs and Erwin Schreiber.
The strategy aims to take advantage of what Robeco sees as an ongoing shift from bank lending to alternative lenders by deploying capital to sustainability-screened small and mid-sized European companies.
The screening is based on UN sustainable development criteria. The firm said it not only invests in companies that are already ‘green’, but also finances measures that a prospective borrower is willing to take to improve its sustainability profile.
Lead portfolio manager Hylarides said: “Our new sustainable senior loan fund creates a unique opportunity for investors to gain exposure to sustainability-screened loans. It builds on Robeco’s SDG framework, aiming to create real-world impact by targeting and working with firms to improve the sustainable nature of their businesses.”