ILX launches new emerging markets SDG-focused private credit fund
Amsterdam-based ILX has launched a new emerging markets SDG-focused private credit fund. Dutch pension provider APG invested $750 million on behalf of its pension fund clients ABP and bpfBOUW. This new private credit fund will invest in private-sector loans arranged by the leading multilateral development banks and other DFIs, such as the ADB, AfDB, EBRD, IDB-Invest, IFC and FMO.
ILX offers the opportunity to benefit from the DFIs’ long-standing track record of successfully investing in key economic sectors across the emerging markets and contributes directly to its SDG and climate-related commitments, whilst offering attractive risk-adjusted returns, combined with robust ESG safeguarding. Furthermore, the fund’s investment strategy of selectively co-investing with a broad range of leading DFIs provides investors with both the desired diversification and scale. Following the $750 million first-close commitment from APG, ILX targets $1 billion in total fund size for ILX Fund I.
Through this scalable ILX fund allocation, DFIs are provided with increased investment capacity for future sustainable projects in key economic sectors and the critical greening of the emerging market economies.
ILX focuses on four key investment themes, to directly address SDG targets and the key objectives of climate mitigation and adaptation:
– Energy access and clean energy,
– Sustainable industry and infrastructure,
– Inclusive finance, and
– Food security.
Manfred Schepers, co-founder and CEO of ILX, said: “We are delighted that APG has made this strategic commitment as the fund’s cornerstone investor, demonstrating its strong support for this SDGfocussed emerging market private credit asset class that matches both APG’s return and sustainability objectives. We look forward to our long-term partnership with APG and to working closely with the global MDB and DFI community, which are recognised leaders in direct SDG and climate-finance investments across emerging markets. We anticipate that other pension fund investors will increasingly look into this development finance asset class as a means to directly support their SDGs and their climate commitments with strong SDI alignment.”
Peter Branner, CIO and member of the board of APG Asset Management, added: “APG and its pension fund clients have the ambition to allocate an increasing share of their pension fund assets to investments that contribute to the SDGs. ILX helps us to deliver on this ambition and to grow and diversify our sustainable development investments (SDIs) within emerging-market debt. We are excited to invest together with leading MDBs and other DFIs in order to further enhance sustainable investment opportunities in emerging markets.”
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