Eiffel raises €500m for impact debt first close

The fund has an €800m target and is aiming to create a portfolio that supports inclusive, ecological transition.

Paris-based investor Eiffel Investment Group has held a first close of its impact debt fund with €500 million.

Eiffel Impact Debt II has a target of €800 million and will be classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation. It will aim to obtain the LuxFLAG ESG label.

It is a follow-up to Eiffel’s first impact debt fund launched in 2019 and which has now deployed 90 percent of its capital. It is expected to be fully invested by the end of July 2022.

The second vehicle will aim to back up to 40 mid-cap companies working to achieve positive impact, with investments of between €10 million to €100 million. Its investments will all be sustainable and geared towards inclusive ecological transition.

Of the €500 million raised so far, more than half comes from investors in the first vintage.

All of its deals must adhere to a set of core criteria measuring investees contributions to transmission that is ecological and social. It will take into account metrics such as carbon footprint, disability inclusion, employee share ownership and workplace accident rates. To achieve this, Eiffel has partnered with Carbone 4 Finance, which will enable it to supplement and standardise climate data provided by its investees.

The vehicle will be managed by a team of five fund managers led by Antoine Maspétiol, who were responsible for managing the first vintage, alongside an expanded 18-person team on Eiffel’s private debt platform.