Lombard Odier Investment Managers (LOIM) has announced the first closing of its sustainable private credit strategy, with a commitment from the Environment Agency Pension Fund (EAPF).
The strategy has an Article 9 classification under the Sustainable Finance Disclosure Regulations (SFDR).
“The transition to a net zero global economy will be highly dependent on the targeted provision of debt financing to corporations to help them make the necessary changes to their business models,” said Graham Cook, Chief Investment Officer at the EAPF.
“This was something the EAPF identified as a priority for investment in our net zero policy.
“We believe that the fund will provide the desired double bottom line of strong investment returns coupled with real world impact in addressing the challenges of climate change.”
The EAPF, part of the LGPS, manages assets of approximately £4.5 billion on behalf of active and closed pension funds of the Environment Agency.
It is a signatory to the Paris Aligned Investment Initiative, which represents 53 asset owners, with $2.9 trillion of aggregate assets, that have committed to achieving net zero alignment by 2050 or sooner.
The LOIM Sustainable Private Credit strategy is designed to deliver tailored solutions-based structured liquidity within less efficiently financed markets. It will seek risk-adjusted returns with lower market correlation than traditional direct lending strategies.