LBP AM European Private Markets’ infrastructure debt climate impact fund has reached a final close of €500m (£434.6m), meeting its initial fundraising target.
The strategy, described as Europe’s first climate impact infrastructure debt fund, attracted commitments from existing investors as well as new institutional backers, LBP AM’s private assets platform said.
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“As Europe’s first climate impact infrastructure debt fund, this strategy has attracted subscribers from previous years and attracted new institutional investors, who accounted for 29 per cent of the total fundraising,” said Bérénice Arbona, head of infrastructure debt at LBP AM European Private Markets. “It illustrates our ability to design innovative financial solutions based on a proven ESG methodology and rigorous impact indicator monitoring tools, particularly for climate impact.”
The Article 9 fund, classified under the Sustainable Finance Disclosure Regulation (SFDR), invests in low-carbon and decarbonising infrastructure projects that contribute to climate change mitigation. It aims to align 70 per cent of its portfolio with the European taxonomy by the end of the investment period.
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The fund targets a below-2°C global warming trajectory. LBP AM said the portfolio is currently on track for an estimated warming outcome of 1.63°C by 2100.
Its climate impact is measured using three performance indicators: alignment with the European taxonomy, carbon footprint, and consistency with a below-2°C warming scenario.
In total, LBP AM European Private Markets has raised nearly €10bn and invested more than €9bn. LBP AM specialises in sustainable finance solutions and is 25 per cent owned by Aegon Asset Management.
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