Allianz Global Investors is looking to raise up to €300 million through the launch of a hybrid private equity and private debt fund focused on impact investing.
The Allianz Impact Investment Fund is the firm’s first multi-asset private market impact vehicle. It will aim to put institutional investor capital to work in projects that generate measurable, positive impacts.
It will invest in both private debt and equity in sectors in Europe including energy efficiency, sustainable land use and agriculture. Allianz GI said all the investments would generate measurable environmental or social impacts as well as financial returns.
Most investment will be made directly into companies and projects, but the vehicle will also have the flexibility to invest in funds managed by third parties. Investments are expected to be split equally between debt and equity.
The fund has an expected 10-year lifespan and will target an IRR of 5-7 percent. It expects to begin investing capital in the first half of 2020.
Allianz GI said it already manages approximately €6bn of impact investments in areas such as renewable energy. The firm stated that the impact of its investments would be measured using a stringent methodology that had been developed in line with industry best practice.
Martin Ewald, lead portfolio manager for impact investments at Allianz GI, said: “As more investors look to allocate capital with the intention of achieving a defined and measurable result rather than just a financial one, the impact sector looks set to experience continued growth.”
Allianz GI said the fund’s documents and investment processes had been developed with the aim of meeting sustainability goals. The firm added that an independent committee would work to ensure that progress towards these goals was monitored.
Beatrix Anton-Grönemeyer, chief sustainability officer at Allianz GI, said: “The impact achieved will be compared with initial objectives for each project in quarterly reports and communicated transparently to the investors.”