- Colesco assumes management of an Article 9 private credit fund financing circular and climate transition businesses, expanding its responsible investment platform.
- The fund, renamed Colesco Circular And Climate Credit Impact Fund, targets measurable environmental outcomes while addressing the private credit funding gap for scaling circular technologies.
- Colesco will oversee more than €1 billion ($1.1 billion) in capital commitments from January 2026, reflecting rising institutional demand for impact-driven private credit.
Colesco Capital has agreed to take over the management of an Article 9 impact credit fund focused on financing circular economy and climate transition businesses, a move that significantly expands the firm’s responsible investment capabilities and scale in private credit markets.
The sustainability-led private credit specialist will assume management of the Polestar Capital Circular Debt Fund following an agreement with Polestar Capital and its investors. The strategy will be renamed the Colesco Circular And Climate Credit Impact Fund, effective 1 January 2026, and will operate as part of Colesco’s broader ambition to build a multi-credit platform aligned with measurable sustainability outcomes.
Expanding Circular And Climate Credit
The fund focuses on providing growth capital to companies developing circular economy and climate solutions, an area where traditional financing has often struggled to support scaling technologies. Its investment universe includes businesses targeting measurable environmental outcomes across circularity, resource efficiency, and climate mitigation themes, with the stated objective of materially advancing the climate transition through private credit.
Colesco said the strategy responds directly to growing investor demand for investment products that combine financial performance with demonstrable impact. Private credit, in particular, has emerged as a preferred channel for investors seeking direct exposure to climate and circular economy assets while maintaining risk-adjusted returns.
Continuity And Scale For Investors
As part of the transaction, the entire investment team managing the strategy will transfer to Colesco. The firm said this ensures continuity for existing investors and borrowers, while also providing access to a larger origination network, increased balance sheet capacity, and broader institutional infrastructure.
Colesco added that the fund strengthens its ability to offer diversified impact credit solutions across different risk and return profiles. The strategy is also designed to address the funding gap faced by companies operating in the circular economy, where capital constraints remain a significant barrier to commercial scaling.
Institutional Backing And Strategic Alignment
Rabobank is a cornerstone investor in Colesco, underscoring institutional support for the firm’s responsible investment approach. Stefaan Decraene, Chair of Rabobank’s Managing Board, said sustainability remains central to the bank’s long-term strategy.
“Sustainability is an important pillar of the Rabobank Group strategy,” Decraene said. “We use our industry knowledge, global network and financial solutions to enable our customers to future-proof their activities, homes and businesses. Furthermore, we are committed to help move the food and energy system in a more sustainable direction.”
“At Rabobank, we believe in supporting partners who share our vision for a sustainable future and actively back projects where financial return and sustainable impact go hand-in-hand,” he added. “Being a cornerstone investor in Colesco allows us to participate in broader impact private credit strategies that address climate, infrastructure, and circularity.”
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Building A Responsible Investment Platform
Colesco said the acquisition aligns closely with its long-term growth strategy and broadens its existing investment proposition. Danny Vroegop, Co-Founder and Chief Executive Officer of Colesco, described the fund transfer as a strategic step toward building a more resilient and diversified platform.
“We took on the management of this strategy because it aligns closely with our long-term strategic growth objectives and brings complementary capabilities to our existing investment proposition, enabling us to offer a more diversified, resilient investment solution,” Vroegop said.
“The Colesco Circular And Climate Credit Impact Fund strengthens our ability to align capital with measurable sustainability outcomes while targeting strong financial returns,” he added. “This marks a pivotal moment in our journey towards becoming a leading responsible investment manager and we plan to expand investor access and scale our presence in new markets and sectors.”
Scale And Regulatory Context
From 1 January 2026, Colesco will oversee more than €1 billion ($1.1 billion) in capital commitments across its platform. The Circular And Climate Credit Impact Fund is classified as an Article 9 product under the EU Sustainable Finance Disclosure Regulation, placing it within the highest sustainability disclosure category under EU rules.
Colesco said all sustainability claims associated with the fund are consistent with its formal legal disclosures, reflecting heightened regulatory scrutiny around impact and greenwashing risks in European private markets.
For institutional investors, the move highlights how private credit managers are increasingly positioning circular economy financing as a core component of climate transition strategies, at a time when policymakers and asset owners are seeking scalable, impact-aligned capital solutions across Europe and beyond.
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