M&G has launched multi sector private debt fund that will invest in private and illiquid debt to achieve a positive social or environmental impact. The diversified fund aims to provide investors with regular income and a total return more than public bonds.
The £44.5m M&G Impact Financing fund has participated in several private and illiquid debt deals. These include lending to the developer behind the major regeneration of the Greenwich Peninsula in London, supporting solar power in the US and providing finance to UK housing associations. These deals will directly help build houses, provide employment and reduce CO2 emissions.
M&G, together with Sustainalytics, has developed a methodology for analysing and measuring the positive effects of the fund’s investments. The fund’s founding investors include M&G Prudential, Big Society Capital and Swedish Foundation for Strategic Environmental Research.
Anne Richards, chief executive, M&G, said: “Asset managers are playing an essential role in putting people’s savings to work in the economy to help create better futures for everyone. This fund is an opportunity for charities, pension funds and other like-minded investors to lend for impact by financing projects that benefit both the environment and society.”
Richard Sherry, manager of the M&G Impact Financing fund, commented: “Environmental and social considerations have long been integrated into our fixed income investment process but the philosophy behind this fund is to actively seek investments that will have a measurable positive impact. It is vital that investors can clearly see what their money is doing to improve people’s lives and the environment whilst providing stable financial returns.”