European private debt investment firm Arcmont Asset Management has secured two mandates and launched a new impact lending strategy. The mandates – collectively totalling €475 million (US$520 million) – were awarded by pension asset manager APG and retirement and financial services provider TIAA. “The approach of this new strategy aligns nicely with our aim of being responsible stewards of our participants’ capital by seeking diversified, long-term performance while driving positive change,” said Wen-Fu Wu, TIAA’s Head of Fixed Income. Arcmont’s strategy involves providing debt financing to companies whose products and services aim to address environmental and social challenges across climate, health, education and sustainable economic growth. Arcmont will regularly report on impact KPIs for its investments. “At APG, we want to be at the forefront of impact investing,” said Menno van den Elsaker, APG’s Head of Alternative Credits. “Through this partnership, we can deliver attractive returns for [our clients], while contributing to their ambitious impact objectives.” The strategy has been developed in collaboration with Bridgespan Social Impact, an impact consultant, and is aligned with the Operating Principles for Impact Management. It has been independently verified by third-party verification firm BlueMark.
