Sustainable Lending Startup Colesco Raises Over $800 Million

Sustainability-focused direct lending startup Colesco Capital announced that it has raised over €800 million (USD$839 million) at its first platform close, with proceeds aimed at investing in companies providing solutions to environmentalEnvironmental criteria consider how a company performs as a steward of nature. and societal challenges.
Founded in the Netherlands in 2023, Colesco provides senior secured debt and subordinated debt to European mid-market companies seeking to achieve sustainable growth ambitions.
The firm focuses its activities on investments in three core themes, including Sustainable Food, Energy Transition, and Inclusive Society, providing investments of between €50 million and €250 million to companies that have a positive ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. impact. Colesco said it is committed to more than 50% sustainable investments, as defined by the EU’s Sustainable Finance Disclosure Regulation (SFDR), with the remaining investments in companies that can “demonstrate a clear pathway to becoming a sustainable investment over time.”
Colesco said that it aims to generate alpha by selecting assets that yield attractive risk adjusted returns while meeting both sustainability and credit quality criteria. Half of the firm’s performance-related fees are directly connected to realising the platform’s sustainability KPIs.
Danny Vroegop, Co-Founder and Chief Investment Officer at Colesco, said:
“The first closing of our platform represents a significant milestone. It demonstrates our added value in the current European direct lending market and highlights how specialized managers that align with specific themes can be very relevant to the current needs of investors.”
Cornerstone investors joining at the first close include APG, the largest pension services provider in the Netherlands, and Rabobank, a Dutch multinational banking and financial services company headquartered in Utrecht, Netherlands.
Stefaan Decraene, Chair of Rabobank’s Managing Board said:
“This investment is a testament to the confidence we have in Colesco. Its strategy is in line with Rabobank’s mission to grow a better world together. By working with partners like Colesco, we can help to accelerate the sustainable transitions needed to future-proof the food and energy systems across the globe.”