Legal & General Capital (LGC) is committing up to US$100m (€94.6m) to ImpactA Global, a women-led advisory firm, to invest in sustainable infrastructure debt in emerging markets.
Earlier this year, LGC, which manages alternative assets on behalf of Legal & General Retirement and third-party investors, acquired a “significant minority” stake in ImpactA as part of a mandate to take strategic interests in fund managers of alternative assets.
The new capital commitment will be directed to debt financing for sustainable infrastructure, with a focus on addressing climate challenges and reducing inequalities.
Laura Mason, CEO at LGC, said: “Socially oriented investing, choosing the right type of capital to meet the social need, can directly address some of the most pressing demands of our time, whether at local, national or international level, while delivering superior risk-adjusted returns.”
“As purpose-driven, impact-led investors, we are pleased to provide funding to our partners ImpactA as they secure opportunities to invest in sustainable infrastructure that offers the potential for positive financial, social and environmental returns.”
ImpactA, was founded by ex-JP Morgan directors Isabella da Costa Mendes and Victoria Miles, who serve as co-CEOs. The company’s senior team also includes Susan Ward and Audrey Caulliez-Louis as partners.
The company focuses on investments in emerging market economies, including Latin America, the Caribbean, Africa and South Asia.
Miles said: “We are uniquely positioned as an infrastructure debt strategy, with our exclusive focus on meeting the need for investment in emerging markets. We intend to generate measurable impact and deliver attractive risk-adjusted financial returns to our investors.
“Legal & General’s commitment demonstrates growing investor appetite to target those markets that are often underserved by traditional players, specifically the opportunity to provide debt financing for sustainable infrastructure in our focus markets.”
Mendes said: “We are encouraged by the growing recognition of the importance of mobilising institutional finance for sustainable investments into emerging markets. Through this new landmark commitment, Legal & General demonstrates that it is fully aligned with our vision to promote institutional financing of sustainable infrastructure assets in emerging markets.”
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