Amsterdam-based credit fund manager ILX Management has held a first close for a credit fund focused on implementing the UN Sustainable Development Goals in emerging markets.
ILX Fund I received a $750 million cornerstone investment from Dutch pension provider APG, which is investing on behalf of its pension fund clients ABP and bpfBOUW. The fund is targeting a total of $1 billion.
Peter Branner, CIO of APG Asset Management, said: “APG and its pension fund clients have the ambition to allocate an increasing share of their pension fund assets to investments that contribute to the SDGs. ILX helps us to deliver on this ambition and grow and diversify our sustainable development investments within emerging market debt.”
The fund will invest alongside multilateral development banks and development finance institutions to mobilise institutional capital to support SDGs and climate finance commitments. The fund will give DFIs increased investment capacity for sustainable projects in key economic sectors that are critical to the greening of emerging markets economies.
It will focus on four investment themes: energy access and clean energy; sustainable industry and infrastructure; inclusive finance; and food security.
Manfred Schepers, co-founder and CEO of ILX, said: “We anticipate that other pension fund investors will increasingly look into this development finance asset class as a means to directly support their SDGs and their climate commitments”.
ILX was created with grant support from the Federal Ministry of Economic Cooperation and Development on behalf of the Germany Ministry for Development Cooperation, the Netherlands Director General for International Cooperation and the UK Foreign, Commonwealth and Development Office.