Lombard Odier IM Launches Climate Transition-Focused Sustainable Private Credit Strategy
Global wealth and asset manager Lombard Odier Investment Managers (LOIM) announced today the launch of a new climate transition-focused Sustainable Private Credit Strategy, with the Environment Agency Pension Fund (EAPF) joining as a cornerstone investor for the fund’s first close.
The LOIM Sustainable Private Credit strategy seeks to provide private loans to diversified North American climate transition-oriented industries. The strategy aims to earn a compelling risk-adjusted return with lower market correlation than direct lending strategies while delivering tailored structured liquidity within less-efficiently financed markets.
The credit strategy is classified under Article 9 of the Sustainable Finance Disclosure Regulations (SFDR).
Jean-Pascal Porcherot, Co-Head of LOIM and Managing Partner at Lombard Odier, said:
“We are delighted that the EAPF has recognised LOIM’s expertise and credentials in sustainable investing. Peter Pulkkinen and Rhys Marsh joined LOIM last year to develop this innovative and impactful strategy, and its first closing marks an important step in LOIM’s strategic plans.”
The EAPF is the leading public body for protecting and improving the environment in the UK. The organization forms part of the UK’s Local Government Pension Scheme (LGPS), managing about £4.5 billion of assets on behalf of active and closed pension funds of the Environment Agency (EA).
Graham Cook, Chief Investment Officer at the EAPF, said:
“The transition to a net zero global economy will be highly dependent on the targeted provision of debt financing to corporations to help them make the necessary changes to their business models. This was something the Environment Agency Pension Fund identified as a priority for investment in our net zero policy. We were delighted therefore to see the launch of Lombard Odier Investment Managers’ sustainable credit fund, with its focus on facilitating the transition using a science-based approach.”
Ritesh Bamania, Head of UK & Ireland Institutional Sales at LOIM, added:
“Our strategy seeks to deliver both these traditional objectives and a sustainability tilt to help accelerate the transition to net zero. The UK institutional business is a key area of focus for LOIM as we expand our sustainability led investment offering. The successful first closing of this strategy and starting a partnership with the EAPF is a great validation of our sustainability expertise.”