Vervoer joins Dutch pension funds ABP and bpfBouw in backing ILX private debt fund which will invest jointly with development finance institutions to provide loans for SDG-focused companies and projects in emerging markets
SDG-focused emerging market private debt fund ILX has reached its fundraising target after securing a $300m (€285m) investment from Pensioenfonds Vervoer, the Dutch pension fund for private transport workers.
Vervoer’s investment, made via the its fiduciary manager Achmea Investment Management, takes the fund size to $1.05bn. It follows the $750m cornerstone investment made by APG Asset Management in January, on behalf of pension fund clients ABP and bpfBouw.
The ILX Fund I will invest in a portfolio of loan participations originated, structured and syndicated by leading leading multilateral development banks (MDBs) and other development finance institutions (DFIs).
Its aim is to mobilise large scale private sector capital towards the sustainable investment goals (SDGs) on four key impact themes: energy access and renewable energy, sustainable industry and infrastructure, inclusive access to finance, and safeguarding sustainable food security.
Manfred Schepers, CEO of ILX, told Impact Investor that the process of reviewing and preparing the fund’s first investments started after its first close in January and that they have “significant pipeline” with all the main global MDBs and DFIs.
Schepers added: “We envisage making commitments of around 20 B-loan projects this year, across emerging markets regions and key sectors. The initial focus has been on the financial institutions and corporate sectors, with projects supporting SME, gender and energy efficiency lending facilities. We are also preparing attractive renewable energy and infrastructure investments that we will complete before the end of the year.”
Following the fund launch at the start of the year, ILX announced a partnership with the European Bank for Reconstruction and Development (EBRD) to mobilise €500m of European pension capital to support the transition to more sustainable, low-carbon economies across the EBDR regions.
The firm also signed an agreement with FMO, the Dutch entrepreneurial development bank, to formalise the collaboration between the two organisations to mobilise institutional investor capital into emerging markets.
In an earlier interview with Impact Investor, Schepers highlighted the increasingly important role of MDBs which are “the most experienced in safeguarding investments in the private sector in emerging markets”.
Link to the full interview, below