Friday Funds: CAM makes first close of $650m across natural capital strategies

The latest developments in ESG-related funds: Achmea launches energy transition fund; PIC invests £40m in housing solutions.

Climate Asset Management (CAM) has made its first close of more than $650 million across its two natural capital strategies. The natural investment manager was launched in August 2020 by HSBC Asset Management and climate change advisory firm Pollination. HSBC acted as anchor investor for both strategies. The natural capital and natural-based carbon strategies offer investors the choice of investing in nature for a financial return, or to receive high-quality carbon credits, respectively. Climate Asset Management continues to raise funds across both strategies and expects to make further announcements in 2023.

Achmea Investment Management has launched an energy transition fund. The Achmea IM Climate Infrastructure Fund has reached a first close of €150 million, receiving investments from Rabobank Pensioenfonds and insurance companies Achmea and de Goudse. The Dutch Article 9 fund will aim to advance the energy transition in Europe by investing in wind, solar and hydropower projects.

Pension Insurance Corporation (PIC), a defined pension funds insurer, has invested £40 million as debt in Housing Solutions, a social housing provider. The company, which manages 7,500 properties in southeast England, has selected PIC as its capital markets funder in a total transaction of £100 million. The remaining £60 million will be bank funded. PIC’s investment will be used to help achieve the housing association’s target of building 350 new homes by 2026, of which 70 percent will be for social and affordable rent and 30 percent for shared ownership.

Elizabeth Park Capital Management and Calvert Impact have been selected to co-manage the Mission Driven Bank Fund. The asset manager and non-profit investment firm were selected by the fund’s anchor investors, Microsoft and Truist. The fund will look to support minority depository institutions and community development financial institution banks through direct investment. It will aim to improve bank sustainability, promote an equitable economy, and address chronic racial gaps in access to financial services.