Robeco has launched a second closed-ended private debt fund targeting sustainable businesses in core European markets.

The Sustainable Senior Loan fund, which has so far raised €130 million, will target small-and medium-sized firms in Benelux, the Dach region (Germany, Austria and Switzerland), as well as selectively in the Nordics.

This capital includes a significant commitment from a subsidiary of its parent, Orix Corporation.

The fund is aiming to take advantage of the shift from bank lending to alternative lending by deploying capital to small-and mid-sized companies with business models aligned with the UN’s Sustainable Development Goals.

The fund will not only invest in firms already deemed ‘green’, but also borrowers taking tangible steps to improve their sustainability profile.

Robeco’s first private debt fund, the Bedrijfsleningenfonds (BLF), has invested more than €700 million across 41 transactions in The Netherlands since 2016.

The new fund will be managed by the firm’s European private debt investment team, including Erik Hylarides and Jan Hendrik Kroon, who are based in Rotterdam, while Glebs Ivanovs and Erwin Schreiber will cover the Germa-speaking markets from Frankfurt.

The team is part of Robeco’s fixed income department, which manages €60 billion globally.

Hylarides, the lead portfolio manager, said the fund’s aim is “to create real-world impact by targeting and working with firms to improve the sustainable nature of their businesses”.

Victor Verberk, chief investment officer at Robeco, added: “We are already seeing significant further appetite from clients looking to integrate sustainability into their private debt allocations.”

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