Insurance and reinsurance marketplace Lloyd’s announced today the launch of the Lloyd’s Private Impact Fund, with an initial £250 million allocation for investment in sustainability-focused assets targeting themes including Climate Mitigation, Climate Adaptation, Circular Economy and Social Inclusion.
According to Lloyd’s, the new fund will address twin objectives of investment return and impact, targeting areas in which the requirement for capital exceeds supply, and with each investment aligned to one of seven UN Sustainable Development Goals (SDGs). The fund is expected to align with Article 9 principles of the EU’s SFDR regulation, which requires sustainable investment or carbon emissions reduction as an objective. The Private Impact fund will invest globally in areas including private equity, infrastructure, natural capital and real estate.
Eleanor Bucks, Chief Investment Officer at Lloyd’s said:
“I am really proud to be announcing the launch and initial investment in the Lloyd’s Private Impact Fund. This is a great example of the impact that insurers can have in addressing climate change and reflects Lloyd’s convening role in leading the Sustainable Markets Initiative Insurance Task Force.”
The new impact fund is the first to be launched on the Lloyd’s Investment Platform, unveiled by the company last month in partnership with Schroders Solutions, consisting of a series of select funds across asset classes, with Lloyd’s market investors able to invest in and allocate between them. Funds on the platform are managed by third parties, advised by Schroders Solutions.
Lloyd’s announced that the portfolio manager for the Lloyd’s Private Impact Fund will be Schroders’ specialist private assets investment division, Schroders Capital.
Ajeet Manjrekar, Head of UK Client Solutions at Schroders Solutions, said:
“We are very proud to be partnering with Lloyd’s on the launch of this innovative solution, which draws on the advisory expertise of our Schroders Solutions team and the private markets capabilities of Schroders Capital.
“In doing so, this Fund provides a single access point to a diversified multi-private asset portfolio covering private equity, infrastructure, real estate and natural capital. Each investment will be aligned to one of seven UN Sustainable Development Goals providing measurable social and/or environmental impact, alongside a financial return.”
Lloyd’s CEO John Neal added:
“The insurance industry has a critical role to play insuring the risks associated with transition, and providing the investment to accelerate progress – which is why we were pleased to announce a £250 million initial investment into an sustainability-focused Private Impact Fund this week.”