Arcmont Secures €475 Million for New Impact Lending Strategy from APG and TIAA

Private debt asset manager Arcmont Asset Management has today unveiled a new Impact Lending Strategy to finance companies with environmental and social issues. The strategy has already received mandates of €475 million (USD $518 million) from global pension asset manager APG and top institutional investor TIAA, which offers pension, insurance, and investment.

Established in 2011 and purchased by TIAA's investment manager Nuveen in 2023, Arcmont has evolved to be an ESG investor in the European private debt arena. Through the Impact Lending Strategy, the investors will enjoy financial return as well as environmental and social positive impact. The strategy will prioritize investment in corporations providing solutions in climate, health, education, and sustainable economic development themes.

Developed in partnership with social impact strategy consulting firm Bridgespan Social Impact, the strategy weaves in impact considerations from across the investment process. It features a rigorous impact due diligence process to make sure investments align with sustainability objectives. Arcmont also intends to release quarterly reports on social and environmental impact generated through these investments, being open to stakeholders.

APG, custodian of assets for pension funds such as ABP, bpfBOUW, and PPF APG, aims to be a leader in impact investing. Through its partnership with Arcmont, the company wants to provide good investment returns while balancing sustainability goals. TIAA, with millions of participants whose assets it invests on their behalf, views the approach as a way of aligning long-term financial performance with sustainable investment practices.

Impact lending is increasingly popular as investors look for investments that are profitable and socially relevant. The expansion of ESG investing has resulted in asset managers creating strategies that tackle issues of global significance like climate change, healthcare access, and education. Arcmont's approach is in line with an industry trend as financial institutions mainstream sustainability into their investment strategies.

With the new approach, Arcmont is part of an expanding cohort of asset managers who see the imperative for sustainable finance solutions. By investing in companies that offer quantifiable outcomes, the firm hopes to support a more equitable and sustainable global economy.

Source: ESG Today