AlpInvest Partners announced that it has secured an Environmental, Social and Governance (“ESG”)-linked credit facility for its AlpInvest Co-Investment Fund VIII (“ACF VIII” or “the Fund”), which successfully completed fundraising at $3.5 billion earlier this month, exceeding its $3 billion target.
The ESG-linked credit facility is linked to the operations of ACF VIII with measurable performance indicators that are directly tied to the interest margin of the credit facility and are designed to further enhance AlpInvest’s integrated approach to Responsible Investment (“RI”). Achievement of the facility’s performance measures include AlpInvest’s investment process, engagement activity and transparency.
Maaike van der Schoot, Responsible Investment Officer at AlpInvest, said: “This ESG-linked credit facility, which we believe is one of the first of its kind for a private equity Co-investment fund, is a milestone for AlpInvest. Adding an ESG aspect to the financing structure demonstrates AlpInvest’s commitment to an integrated sustainability approach and to promoting the widespread adoption of responsible investment practices in the private equity industry.”
Rob de Jong, Managing Director & Co-Head of Co-Investments, and Richard Dunne, Managing Director and Co-Head of Co-Investments at AlpInvest said: “AlpInvest has long considered sustainability a key component of our investment processes and core to identifying risks as well as value creation opportunities. The robust KPIs linked to the credit facility provide an effective incentive to build on that approach and represent the natural next step in our long-standing commitment to RI.”
AlpInvest has a long track record of ESG integration and continues to support the adoption of RI in the private equity industry. AlpInvest first developed its Responsible Investment Standards in 2008 and were an early signatory to the United Nations Principles for Responsible Investment (“PRI”).
ABN AMRO arranged the facility as lead facility agent and Rabobank acted as sustainability co-ordinator.