Amsterdam, May 27, 2021: Phenix Capital has today released its Impact Report: Deep Dive on Private Debt Funds. The report finds that between 2015 and 2020, €32 billion has been committed to Private Debt impact funds tracked by Phenix Capital’s Impact Database. The report also highlights that fundraising of currently open Private Debt funds, with a target totalling €28 billion, is on track to surpass historical capital commitments, indicating an increasing interest in the asset class.
Across all asset classes, the number of impact funds has declined in 2020 compared to 2019. Specifically within Private Debt, 25 impact funds were launched in 2020 compared to 38 the previous year. Despite this drop, €4.6 billion was committed in 2020 compared to €2.3 billion in 2019.
“Private debt is an increasingly prominent asset class and we observe that trend in the impact investing space as well, with relevant fund solutions being raised and deployed in both developed and emerging markets. We see the tailored nature of private debt instruments across the capital structure as an important driver for asset owners to gain exposure to impact investments matching the constraints and nature of their mandates,” said Dirk Meuleman, CEO of Phenix Capital Group.
► Read the Impact Report: Deep Dive on Private Debt Funds here
The report provides in-depth breakdowns of recent trends in impact investing within the Private Debt asset class, focusing on funds with vintage years between 2015 and 2020. Next to the insights and analytics provided by Phenix Capital's Impact Database, the report also features interviews with practitioners managing Private Debt impact funds: ACTIAM and Tikehau Capital.
Renewable energy is found to be the most represented impact theme for closed as well as open Private Debt impact funds. Between 2015 and 2020, SDG 7: Affordable and Clean Energy was also the most targeted goal. In addition to renewable energy, financial inclusion and agriculture are the main sectors targeted by impact funds currently open for investment. As a result, SDG 8: Decent Work and Economic Growth is now the most widely targeted goal. The publication further details the evolution of capital commitments across markets and regions.
“We think that an impact approach is key and that private debt provides a great way to support SMEs along their impact journey. Impact transition will enable corporates to strengthen their credit profile and will ultimately help them become more profitable and sustainable, keep their employees engaged, and attract new talent and customers,” said Nathalie Bleunven, Head of Corporate Lending at Tikehau Capital.
There are currently 251 Private Debt impact funds from 133 different fund managers tracked on Impact Database. Out of these, 148 funds from 99 fund managers are currently open for investments.
Phenix Capital Group is an impact investment consultant that enables institutional investors to make impact investments. Founded in 2012, the company has been dedicated to building a solid knowledge based for the impact investing industry, educating asset owners, and catalysing institutional capital to impact investing.
Phenix Capital’s Impact Database provides investors with access to and intelligence on the impact fund market opportunities available to them. Three main variables used to construct, monitor and update the dataset: funds considered have an impact proposition; institutional scale; and target market-rate returns. Impact Database now includes detailed overview of more than 1,700+ impact funds.
Current fundraising for Private Debt impact funds, amounting to €28 billion, is close to overtaking historical capital commitments to the asset class since 2015
For more information, contact our team at info@phenixcapitalgroup.com or call + 31 20 240 27 31.
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