Amundi launches private debt impact fund with investment commitments of EUR650 million
European asset manager Amundi, has launched the fourth vintage of its core private debt strategy, Amundi Senior Impact Debt IV. This fund is dedicated to financing mid-caps in France and Europe with proven pre-Covid-19 performance and resilience and has already raised EUR650 million in commitments from longstanding investors.
Building on the success of its predecessor, Amundi Senior Debt III, which raised EUR915 million, this new fund follows the same strategy by offering investors diversified exposure to the private senior corporate debt market. Classified as article 8 under SFDR, the strategy will focus on impact financing with an incentive for companies to reach their ESG objectives as defined when investing.
Intended exclusively for institutional investors, the Amundi Senior Impact Debt IV fund will be invested solely in Euros in senior private debt of about 40 companies, across various business sectors in the European Union. It offers long-term financing, of EUR10 to EUR100 million each, to support midcaps through the business recovery and their expansion plans and associated challenges, such as relocation of strategic production activities to Europe, support for the environmental transition, and adaptation to new modes of consumption.
In addition to the traditional financial covenants, most financings will be featuring extra financial or impact covenants. Those will be designed with the company’s management in order to define relevant improvement axes for each company (carbon footprint reduction, job creation, education and training, governance). These impact covenants will allow companies to adjust, upward or downward, their financing costs.
With EUR8 billion invested in more than 180 companies since 2021, Amundi Private Debt is a leading player with a proven track record that enjoys unrivalled access to French and European midcaps (+250 opportunities per year) thanks to an established network of business relationships and successful transactions. These companies undergo a rigorous selection process based on both financial and extra-financial criteria, in line with Amundi's ESG policy, and are supported throughout the investment process to improve their performance.
Thierry Vallière, Head of Private Debt at Amundi, says: "We launched the fourth edition of Amundi Senior Impact Debt IV with the same investment philosophy as its predecessors, which proved their merits during the recent health crisis. The fund will focus on pure senior debt, with a risk framework consistent with the profile of each company, the systematic presence of financial covenants and a particular focus on ESG factors, with namely the integration of impact covenants for most financings as well as supporting companies with their ESG challenges. We are confident in our ability, demonstrated in each of the previous editions of the funds, to rapidly roll out and build diversified and resilient portfolios for our investors.”