When it comes to impact, private credit is often considered to be lagging behind other private markets asset classes. There are, however, signs that this is changing. Debt funds to hold a final close raised a combined $5 billion in 2024, the second-highest total of any asset class behind private equity.

Dutch institution APG Asset Management is one major LP to turn its attention to impact debt. The €616 billion fund recently moved into infrastructure debt with an impact focus and is considering buying impact credit assets in the US.

APG was one of the cornerstone investors in sustainable lending debutant Colesco, which raised €800 million for a mid-market European lending strategy with “a mission to unite capital and purpose”, the firm announced earlier this year. The Dutch firm, established in 2023, is seeking to raise between €1 billion and €1.5 billion. At €800 million, it has already become the largest private debt impact fund of its kind.

In this episode of The New Private Markets Podcast, we speak to Menno van den Elsaker, head of alternative credits at APG, and Colesco CIO Danny Vroegop to discuss the growth of the impact lending market, how LPs are approaching it, and where the opportunities for investors are.

Learn more about the Impact Investor Global Summit in London here

Don't be put off by political noise. Reduced competition and growing demand for energy has made investment in US renewable energy generation easier and more attractive, says Natalie Adomait, managing partner and chief operating officer in Brookfield's renewable power and transition group.

Adomait is one of the speakers at the Impact Investor Global Summit on May 20th and 21st in London. In this pre-event special episode of The New Private Markets Podcast, we speak with her about the firm's two giant energy transition funds, interest in emerging markets, and how actions taken by the Trump administration have affected market dynamics.

"For us, this is a fantastic time to invest," she said. "You see a little less competition from investors looking at these large developers that have strong track records, incumbent teams and ready-to-build projects. But there is less competition for them, despite the fact that the demand growth is actually increasing from where we saw it five to 10 years ago. It's easier [to transact], is the short answer, but the more interesting undertone is that it is actually more attractive."

At our upcoming event, Adomait will be speaking on a panel on the economics of the energy transition alongside Anders Bendsen Spohr from Novo Holdings and Stephanie Bilo from ResponsAbility Investments. Marjoleine van der Peet from Collective Action will chair the discussion.

How do you create an impact strategy that passes muster with LPs? The question is on the agenda for both our upcoming Impact Investor Global Summit in London in May and for this special event preview episode of The New Private Markets Podcast.

Ben Constable Maxwell is head of impact strategy at UK-based global investor M&G Investments. The organisation sits on both sides of the LP-GP relationship, managing its own impact strategies in private equity and private credit, as well as backing other GPs through fund of funds programmes.

At out upcoming event, Constable Maxwell will be participating alongside representatives from the United Nations Joint Staff Pension Fund, APG Global Private Equity, Portocolom and Golding Capital Partners, discussing what managers need to do to create a robust impact investment proposition.

In this episode, he takes us on a whistle-stop tour from the high-level philosophical aspects of impact investing through to the more prosaic elements that GPs need to have in place. He also tells us how the headwinds blowing in the face of sustainable investment are reaffirming the resolve and commitment of investors, rather than undermining it.