Friday Funds: Nuveen raises $218m for circular economy impact fund

The latest developments in ESG-related funds

Nuveen has announced the final close of its first private equity impact fund with $218m raised. The fund, which will target investments in companies working in waste reduction, the circular economy, improving energy efficiency, reducing emissions and expanding access to products and services for underserved groups, received commitments from “a diverse mix of global investors”. It has already made two investments and expects “a strong pipeline of deals” in the first half of 2022.

Meanwhile, Dutch retail sector pension fund Pensioenfonds Detailhandel has invested €100m in a circular economy debt fund launched by Polestar Capital. The fund, which Polestar is expecting to grow to €400m, will extend loans to circular economy projects in the Netherlands.

LyondellBasell, Chevron Philips Chemical and Dutch investment agency Invest-NL are among the firms to have invested €40m to Infinity Recycling’s Circular Plastics Fund. The fund, which is targeting €150m and will be classified as an Article 9 fund under the EU’s sustainable finance disclosure regulation, will invest in firms scaling up plastic recycling technologies.

Mediolanum has launched a new circular economy equity fund. KBI Global Investors and Pictet Asset Management will act as delegate managers for the fund, which invests in companies across the world contributing towards the transition to a circular economy.

Alliance Bernstein has launched a UK-domiciled version of its $4bn global sustainable equities strategy. The fund will invest across three themes of climate, health and empowerment.

Luxembourg-domiciled ESG funds now account for 44% of European ESG AUM, according to new figures released by Luxembourg for Finance. At the end of December, 1234 sustainable bonds worth €640bn were listed on the Luxembourg stock exchange, a 47% increase on the beginning of the year.

Euronext has launched a new index containing the 25 best ESG performers from the Dutch AEX and AMX indices. The index is the third variant on a national index following the launch of equivalents for the CAC 40 and MIB indices and includes the 25 ‘best in class’ firms based on Sustainalytics’ ESG risk ratings, as well as incorporating negative screening based on the UN Global Compact.

SWEN Capital Partners has raised €43m in the latest funding round of its Blue Ocean Fund, bringing the total raise to €95m. The French sovereign investment fund BPI and Ifremer, the National Institute for Ocean Science, are among the new investors in the fund, which will invest in 20 to 25 start-ups in areas such as sustainable aquaculture, renewable marine energies and decarbonising marine transport. It is targeting a €120m raise.

Rosemont Investment Group has taken a minority stake in impact manager Veris Wealth Partners for an undisclosed sum.