APG, the Dutch pension services provider managing €577 billion in assets, has committed to a sustainable direct lending platform managed by Colesco Capital. This investment, part of the platform’s first funding close, totals over €800 million, with Rabobank also contributing as a cornerstone investor. APG manages pension assets for several large Dutch funds, including ABP, bpfBouw, and PPF.
Colesco Capital’s direct lending platform focuses on financing mid-market European companies committed to achieving net-zero emissions. The platform’s investment strategy aligns with Colesco’s Responsible Investment Framework, which prioritizes businesses involved in sectors like sustainable food and the energy transition. This strategic approach is intended to support companies that are not only economically viable but also contribute to the achievement of sustainability goals.
Commitment to Transparency and Impact
A key feature of the platform is its commitment to transparency and impact reporting. Colesco Capital has pledged to provide regular updates on investment outcomes, using sustainability KPIs and the IRIS+ framework to track and demonstrate the real-world impact of its investments. This focus on measurable results ensures that investments align with both financial and environmental objectives.
APG’s Strategic Investment Approach
Menno van den Elsaker, Head of Alternative Credits at APG, highlighted the strategic importance of the platform, noting that Colesco Capital met APG’s high standards for sustainable investments while offering the potential for strong returns. He expressed particular enthusiasm about supporting the growth of businesses in the Netherlands that are driving the country’s sustainable growth ambitions.
APG’s investment reflects a broader trend within institutional investment to integrate sustainability into credit markets, particularly through direct lending, which provides companies with flexible financing options. By backing Colesco Capital’s platform, APG is positioning itself as a key player in the financing of Europe’s sustainable business transformation.
Conclusion
With its €800 million commitment to Colesco Capital, APG is making a significant move to advance sustainable finance in Europe. The direct lending platform’s focus on supporting companies with a clear pathway to net-zero emissions aligns with both APG’s investment goals and global sustainability targets. As more institutional investors adopt similar strategies, the direct lending market is set to become an increasingly important tool in financing Europe’s transition to a low-carbon economy.
References:
- APG. “Sustainable Direct Lending Platform Investment Overview.”
- Colesco Capital. “Responsible Investment Framework.”
- Rabobank. “Rabobank’s Role in Sustainable Investment.”
Image by Freepik
