Robeco launches Sustainable Senior Loan Fund

Written by Adam Cadle

14/03/2023

Robeco has launched the Robeco Sustainable Senior Loan Fund (SLF), its second closed-ended private debt fund and one of the first to credibly integrate sustainability into private debt investments.

SLF has so far raised €130m, including a significant sponsor commitment from ORIX Corporation Europe N.V., a group company of ORIX Corporation, and also Robeco’s parent company, and will start investing while continuing fundraising throughout 2023 and 2024. Robeco's Sustainable Loan Fund is intended for professional and institutional investors.

SLF aims to take advantage of an ongoing shift from bank lending to alternative lenders by deploying capital to sustainability-screened small- and mid-sized companies in the economically strong and lender-friendly European regions of Benelux, DACH, and selectively in the Nordics. The strategy applies sustainability screening based on the UN Sustainable Development Goals and selects stable and resilient businesses. SLF not only invests in companies that are already ‘green’, but also finances tangible and meaningful measures that a prospective borrower is willing to take to improve its sustainability profile.

Erik Hylarides, lead portfolio manager, said: “Our new Sustainable Senior Loan Fund creates a unique opportunity for investors to gain exposure to sustainability-screened loans. It builds on Robeco’s SDG framework, aiming to create real-world impact by targeting and working with firms to improve the sustainable nature of their businesses.”

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