CAPZA receives €120m mandate for ESG credit fund

The evergreen vehicle will focus on backing mid-sized companies with the ability to make a positive environmental impact.

France-based alternatives manager CAPZA has received a €120 million mandate from insurer MAIF to invest in environmental impact opportunities.

The capital will be deployed by CAPZA’s subsidiary Artemid, which has formed MAIF Dette à Impact Environnemental Fund to manage the mandate. It will aim to invest in approximately 15 mid-sized companies providing senior debt with a five to eight-year maturity.

Investments will be made in line with MAIF’s “société à mission” status and support companies that are reducing their carbon footprint and developing their social commitments.

Artemid specialises in providing senior loans to mid-cap companies and two-third of loans issued since 2020 already include ESG criteria as part of their pricing structure.

The fund will be an evergreen vehicle and is classified under Article 9 of the EU’s Sustainable Finance Disclosure Regulation.

It will seek companies with good governance and a willingness and ability to contribute to carbon neutrality and improve their environmental impact. The fund will feature an impact bonus incentive for the investment team, which will depend on its ability to achieve its impact goals.

The vehicle has already financed two companies, Contellation and Visiative, and is currently working on backing a third deal.

Aurora Gauffre, head of sustainability and impact at CAPZA, said: “We are proud to be committed with MAIF, a “société à mission”, in this innovative project which aims, through an evergreen fund, to commit, finance and support medium-sized companies in their decarbonation trajectory in line with the Paris Agreements. CAPZA, which has made climate change one of its priorities, has also recently launched a mid-cap LBO fund focused on decarbonation.”