Colesco Capital Raises €800M For Sustainable Lending

Colesco Capital has raised more than €800 million in its first close, marking a significant milestone for the sustainability-driven direct lending platform. The raise has been supported by APG and Rabobank, two of the most prominent investors who are known for their commitment to sustainability. This achievement underscores the growing importance of aligning financial performance with environmental and social impact, particularly in the European market.

Colesco Capital's strategy is to integrate sustainability into investment decisions, focusing on businesses that contribute to a sustainable society. According to Danny Vroegop, Co-Founder and Chief Investment Officer at Colesco, the first closing of the platform reflects the company's added value in the current direct lending market and highlights the relevance of specialized managers who align with specific sustainability themes. In excess of 50% of the investments made through the platform are targeted at firms that already meet established sustainability criteria, with the remainder directed to firms on a clear trajectory toward achieving these standards.

One of the key features of Colesco's approach is how it ties its success to the achievement of sustainability outcomes. Half of the platform's performance-related fees are directly linked to meeting specific environmental and social Key Performance Indicators (KPIs). The firm uses a rigorous credit underwriting process and the IRIS+ framework, a widely recognized standard for measuring impact outcomes, to ensure that its investments create measurable societal value.

Colesco's thematic investment focus lies in three main areas: Sustainable Food, Energy Transition, and Inclusive Society. Through the firm, Colesco looks to address some of the biggest global issues to come: food security, renewable energy, and social equity. Specifically, in sustainable food, Colesco is looking to invest in innovations that are capable of improving global food systems, including participating in companies that are finding solutions for food scarcity and inefficiencies in production. The energy transition focus involves support for renewable and clean energy solutions - crucial to reducing carbon footprint and propulsion of global efforts to combat climate change. Colesco further commits itself to sponsoring businesses that contribute to social equity, affords access to the many marginalized communities to opportunities, and assists in redressing systemic inequalities in society.

The alignment of Colesco's strategy with the values of its cornerstone investors, APG and Rabobank, further strengthens the platform's sustainability-driven approach. Menno van den Elsaker, head of alternative credits at APG, is convinced that Colesco will meet the sustainability criteria and deliver attractive investment returns responsibly. Stefaan Decraene, chairman of Rabobank's managing board, further comments: "The investment in Colesco perfectly fits Rabobank's mission to build a better world. Rabobank would like to partner with Colesco to speed up the transitions required to future-proof the global food and energy systems.

Robin van den Brandhof, Co-Founder and Chief Operating Officer at Colesco, also shared the excitement of his peers, as this is a very important milestone and a vote of confidence from both APG and Rabobank. The company is dedicated to mobilizing institutional capital to support European businesses in their transition towards more sustainable practices. With such strong support from like-minded investors, Colesco is well-positioned to be a leader in Europe's sustainable transition.

Looking forward, Colesco Capital will continue to pursue the goal of combining financial returns with sustainable outcomes. By focusing on critical sectors such as sustainable food, energy, and social inclusion, Colesco offers investors attractive returns but also contributes to the achievement of broader societal goals. It shows that, at the heart of responsible investing and sustainability, lies financial markets playing a pivotal role in advancing global sustainability. With its solid foundation, Colesco is well-positioned to be the game-changer for the future development of investment and societal growth in Europe.

Indeed, Colesco Capital's great success in attracting more than €800 million attests to an increasing demand for investments that not only meet the ESG criterion but also clearly focus on sustainable industries. Moreover, Colesco has great partnerships with significant investors such as APG and Rabobank, which give it a greater chance of performing both financially and socially, ultimately contributing significantly towards Europe's much-needed transition toward a more sustainable future.