fund finance

The Singapore-based healthcare investors was an early mover in ESG-linked fund finance: it is once again breaking new ground.

Five banks acted as joint sustainability co-ordinators on the facility, secured by PAG for its private credit business.

A handful of firms – including Carlyle, EQT, Eurazeo, Cinven and ICG – have been self-imposing financial incentives for improved sustainability performance. Astorg’s facility is among the largest.

The facility is comparable to the one sourced for the firm's European PE funds, and will be tied to three ESG KPIs.

Partners Group has deployed €750m in sustainability-linked loans over the last 12 months as engagement picks up in Europe and the US.

The interest rate will be linked to sustainability performance target.

ESG-linked subscription lines are becoming more common, with the market evolving quickly on both sides of the Atlantic.

ESG criteria are increasingly used to provide rate discounts, but some question the benefits of these facilities.

Carole Brozyna, a former sustainability chief for IKEA, JCDecaux and Sanofi, joins Bridgepoint as the firm announces a sustainability-linked credit line for its €7bn buyout fund.

Relevant areas for the loan include climate change, gender diversity and ESG governance.