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Amundi launches private debt impact fund with investment commitments of €650 million

Amundi, the leading European asset manager, has launched the fourth vintage of its core private debt strategy, Amundi Senior Impact Debt IV. This fund is dedicated to financing mid-caps in France and Europe with proven pre-Covid-19 performance and resilience and has already raised €650 million in commitments from longstanding investors.

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Building on the success of its predecessor, Amundi Senior Debt III, which raised €915 million [1], this new fund follows the same strategy by offering investors diversified exposure to the private senior corporate debt market. Classified as article 8 under SFDR [2], the strategy will be focusing on impact financing with an incentive for companies to reach their ESG objectives as defined when investing.

Intended exclusively for institutional investors, the Amundi Senior Impact Debt IV fund will be invested solely in Euros in senior private debt of about 40 companies, across various business sectors [3] in the European Union. It offers long-term financing, of €10 to 100 million each, to support midcaps through the business recovery and their expansion plans and associated challenges, such as relocation of strategic production activities to Europe, support for the environmental transition, and adaptation to new modes of consumption.

In addition to the traditional financial covenants, most financings will be featuring extra financial or impact covenants. Those will be designed with the company’s management in order to define relevant improvement axes for each company (carbon footprint reduction, job creation, education and training, governance…). These impact covenants will allow companies to adjust, upward or downward, their financing costs.

With €8 billion invested in more than 180 companies since 2012 [4], Amundi Private Debt is a leading player with a proven track record that enjoys unrivalled access to French and European midcaps (+250 opportunities per year) thanks to an established network of business relationships and successful transactions. These companies undergo a rigorous selection process based on both financial and extrafinancial criteria, in line with Amundi’s ESG [5] policy, and are supported throughout the investment process to improve their performance.

Thierry Vallière, Head of Private Debt at Amundi, said: "We launched the fourth edition of Amundi Senior Impact Debt IV with the same investment philosophy as its predecessors, which proved their merits during the recent health crisis. The fund will focus on pure senior debt, with a risk framework [6] consistent with the profile of each company, the systematic presence of financial covenants and a particular focus on ESG factors, with namely the integration of impact covenants for most financings as well as supporting companies with their ESG challenges. We are confident in our ability, demonstrated in each of the previous editions of the funds, to rapidly roll out and build diversified and resilient portfolios for our investors.”

Amundi Senior Impact Debt IV is a Luxembourg SICAV-RAIF, marketed exclusively to institutional investors in France, Germany, Austria, Belgium, Denmark, Spain, Italy, Luxembourg, Netherlands, Sweden, Norway and Finland. This edition has a gross target IRR of 4.5% [7].

Amundi Senior Impact Debt IV has already raised €650m from long-term investors and continues to raise funds with an objective over €1 billion. The minimum investment amount is €3 million.

Next Finance 13 September

Article also available in : English EN | français FR

Footnotes

[1] Amundi data at 30/06/21

[2] Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector.

[3] Excluding financial institutions and insurance companies

[4] Amundi data at 30/06/21

[5] You can consult the ESG Charter of Amundi Private Debt by clicking here: https://www.amundi.fr/fr_instit/Exp...

[6] Such as credit and liquidity risks.

[7] All investments involve the risk of loss of the capital invested. There is no guarantee that this objective will be achieved. Gross returns will be impacted by various charges.

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