Earlier this month European mid-market private equity shop Inflexion joined the swelling ranks of firms to secure ESG-linked fund finance facilities. Linked to its newly closed £2.5 billion ($3.3 billion; €3 billion;) fund, the cost of Inflexion’s facility will be linked to three portfolio company KPIs: carbon intensity, senior management team diversity and “governance best practice”.
As is always the case with these facilities, granular detail about the size of the margin discount, or penalty, remains private between Inflexion and the lenders (Citi Bank, Wells Fargo, RBSi and RBC).
Have you secured an ESG- or impact-linked credit facility at the fund or firm level? If so, our research team want to hear from you. Please contact Mariam Otaiku on email@example.com.