LOIM and Environment Agency Pension Fund Launch Private Credit Strategy

Lombard Odier Investment Managers (LOIM) has partnered with the Environment Agency Pension Fund (EAPF) to launch a sustainable private credit strategy, the company announced.

US portfolio managers Peter Pulkkinen and Rhys Marsh, who both joined Lombard Odier from Avenue Capital Group last year, developed the strategy they now co-direct.

The group said the first closing of the fund, which is classified under Article 9 of the Sustainable Finance Disclosure Regulation, is an example of the commitment to a sustainable investment model that supports the transition to net zero goals.

The strategy aims to provide primarily bilateral senior secured private loans to diversified North American industries focused on climate transition. Within this framework, the fund should provide risk-adjusted returns that are less correlated to the market than traditional direct lending strategies.

The EAPF, which is part of the Local Government Pension Scheme, manages £4.5bn (€5.30bn) of assets on behalf of active and closed Agency pension funds to the environment. The latter is a non-departmental public body sponsored by the UK Department for Environment, Food and Rural Affairs.

Commenting on the launch, LOIM Co-Director Jean-Pascal Porcherot said: “We continue to expand our sustainable investment offering in public and private markets with differentiated solutions that deliver sustainability outcomes and financial returns. potentially attractive.”

EAPF is also a signatory to the Paris Aligned Investment Initiative, which represents more than 50 asset owners totaling $2.9 billion in assets and is committed to achieving net zero investment goals. here 2050.

This is the latest merger between the Swiss group and a major British institution, having launched a circular bioeconomy fund at the end of 2020, inspired by His Royal Highness the Prince of Wales.

Dolores W. Simon