Private debt asset management firm Arcmont Asset Management announced the launch of a new Impact Lending Strategy, aimed at providing debt financing to companies whose products and services address environmental and social challenges.

The new strategy is being rolled out with two mandates, totaling €475 million (USD$518 million) already secured, from global pension asset manager APG, and pension, insurance and investment services provider TIAA, one of the the world’s largest institutional investors.

UK-based Arcmont was founded in 2011, and acquired by Nuveen, the investment manager of TIAA, in 2023.

Anthony Fobel, CEO of Arcmont Asset Management, said:

“Arcmont is a leading responsible investor in the European Private Debt market and one of the first Private Debt firms of its size to launch an Impact Lending strategy. We are proud to take this step forward with APG and TIAA’s support and we believe that this strategy will provide our investors with a meaningful way to contribute to a sustainable future.”

Developed in collaboration with impact consultant consultancy Bridgespan Social Impact, the new strategy will aim to offer investors an opportunity to achieve financial returns alongside positive measurable environmental and social impact, financing companies focused on solutions in areas including climate, health, education and sustainable economic growth, with impact considerations integrated throughout the investment lifecycle and a rigorous impact due diligence process. Arcmont added that it will release information about the strategy’s impact throughout the investment cycle, providing investors with insights into the social and environmental outcomes achieved.

Menno van den Elsaker, Head of Alternative Credits at APG, said:

“At APG, we want to be at the forefront of impact investing. Through this partnership with Arcmont, we can deliver attractive investment returns for our clients ABP, bpfBOUW and PPF APG, while contributing to their ambitious impact objectives. We are excited to further our partnership with Arcmont through our commitment to the Impact Lending strategy.”

Wen-Fu Wu, Deputy CIO and Head of Fixed Income, TIAA added:

“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.”