Ambienta Raises Over €500 Million for European Sustainable Loans

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(Bloomberg) — Investment firm Ambienta SGR has raised over €500 million ($594 million) for its inaugural private credit fund to lend to environmentally sustainable mid-market companies in Europe, a sign of investor demand even as green finance has fallen lower on the political agenda. 

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Europe-based investors including Netherland’s APG Asset Management, the European Investment Fund and the UK’s Environment Agency Pension Fund have backed Ambienta’s fund, according to a statement seen by Bloomberg News. Asian and North America investors have also committed.

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The firm is among European players which have raised or are in the process of raising credit funds with a sustainable mandate, including Colesco Capital and LGT Capital Partners. Sustainability efforts in private credit markets were relatively nascent until a few years ago, when investors started to demand and expect Environmental, Social and Governance (ESG) metrics in portfolios.

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However, the Trump administration’s opposition to renewable energy and a push in Europe to boost competitiveness are posing headwinds to the EU’s ESG agenda. 

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Ran Landmann, partner and chief investment officer at Ambienta’s credit arm, sees the firm’s business as removed from political mood swings. 

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“The theme of environmental sustainability is no less relevant than it was a few years ago,” Landmann said in an interview. Ambienta, he said, invests “in companies whose products and services are driven by sustainability and business drivers, rather than political goodwill.” 

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The fund has already deployed around €300 million across 13 companies, according to a statement from Ambienta. It focuses solely on environmental sustainability, rather than social and governance-based deals. So far, it’s backed companies in areas including energy infrastructure, water and food ingredients.

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Analysts at Morgan Stanley recently said the overall outlook for clean technology is upbeat, with their bullishness largely hinged on expectations for strong data center growth. 

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Some investors and asset managers have shown they are ready to divest from players not deemed focused enough on sustainability. In recent months, Dutch pension funds PFZW and PME each pulled a €14.5 billion and €5 billion equity from BlackRock Inc. amid concerns the money manager wasn’t acting in the best interests of clients when it comes to climate risk. For the same reason, US-based hedge fund manager AQR Capital Management lost its mandate of around €4 billion with PFZW. 

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Like some of its peers, Ambienta uses sustainability ratchets, a discount obtained on pricing if specific sustainability Key Performance Indicators are satisfied. They’re used on a case-by-case basis, rather than being a must-have on all transactions, Landmann said.

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Founded in 2007, Ambienta is a sustainability investor managing more than €4 billion in assets, according to its website. Last year it raised €500 million for a private equity strategy investing in small-cap, environmentally sustainable European companies.

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