Lloyd’s launches £250m sustainability-focused private impact fund

Lloyd’s Investment Platform has launched Lloyd’s Private Impact Fund, with Schroders Capital appointed as its portfolio manager.

The £250m (€284m) fund, with Lloyds of London as the cornerstone investor, will invest globally across private equity, infrastructure, natural capital, and real estate targeting the long-term themes of climate mitigation, climate adaptation, the circular economy, and social inclusion.

The Lloyd’s Private Impact Fund is the first fund to be launched on the Lloyd’s Investment Platform, which was set up to help investors in Lloyd’s market generate attractive risk-adjusted returns on capital and access a broader range of investment opportunities, including private assets.

This builds on the investment partnership announced last year with Schroders Solutions, part of the Schroders Group.

The Lloyd’s market is supported by around £95bn of globally-invested assets.

Eleanor Bucks, chief investment officer at Lloyd’s, said the new fund 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”.

Bucks added: “The design of the fund is itself innovative, being open-ended and categorised as an Article 9 impact fund.”

John Neal, chief executive officer at Lloyd’s, said: “Lloyd’s has committed to be the insurer of the transition to net zero, providing both the capital and the capability to enable industries and economies to build a sustainable future.

“The insurance industry has a critical role to play insuring the risks associated with transition, and providing the investment to accelerate progress.”

Ajeet Manjrekar, head of UK client solutions at Schroders Solutions, said the new fund would ”provide a single access point to a diversified multi-private asset portfolio covering private equity, infrastructure, real estate and natural capital”.

He added that each investment will be aligned to one of seven UN Sustainable Development Goals providing measurable social and/or environmental impact.

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