In brief: Four impact levers for direct lenders

Kartesia – raising a €500m-target impact fund – ‘feels very comfortable’ that its portfolio companies will align with their impact goals, says head of CSR and ESG Coralie De Maesschalck.

Without owning or having a controlling stake in companies, it can be more challenging for private debt impact fund managers to ensure their investments fulfill their impact potential. But this does not worry Kartesia, a mid-market debt firm raising an impact fund understood to be targeting €500 million.

The firm’s head of CSR and ESG, Coralie De Maesschalck, told delegates at New Private MarketsImpact Investor Global Summit this week that the firm “feels very comfortable [that it will] have an impact”. She shared four ways the firm plans to secure its impact:

  1. Choose well: Kartesia “has the luxury to spend a lot of time” with companies’ management during due diligence to ensure they are aligned with Kartesia’s impact mission
  2. “We can incentivise them financially with sustainability-linked loans” to meet non-financial KPIs
  3. “We always negotiate for a seat at the board
  4. “We always collaborate a lot with the private equity sponsor

Kartesia launched Impact Fund I in January 2022. It is an Article 9 fund targeting social and environmental impact. The firm did not comment on fundraising.