Tikehau Capital Launches High Yield Impact Credit Fund
Tikehau Capital has launched a new product, Tikehau Impact Credit (“TIC”). TIC's mission is to finance and actively engage with companies across a diverse range of sectors which have the potential to enable the global shift towards a net zero carbon economy; the new fund will sit alongside Tikehau Capital’s private assets impact strategies.
TIC will focus on three buckets of investments and issuers: Green or Sustainability-linked bonds or climate pure-players already involved in the energy and ecological transition (bucket A); issuers who have signed an international pledge towards climate change (bucket B); and a sector-agnostic approach to companies with the potential to contribute positively to climate change mitigation or adaptation or to reduce other highly material environmental externalities (bucket C).
TIC will build on industry-recognised standards to set key impact goals including a 30% carbon intensity reduction target compared to the High Yield ESG index (ICE Global High Yield ESG Tilt Index), a minimum 25% invested in issuers highly exposed to climate change which need to accelerate their transition and where impact can be meaningful (eg. manufacturing, agriculture, transportation) and a contribution towards an annual 5% self-decarbonisation by sector as a best-effort.
Tikehau Capital has committed €30mn of initial capital to this fund.
Raphaël Thuin, Head of Capital Markets Strategies for Tikehau Capital, said: "We are thrilled to further expand our impact platform with the launch of our high yield impact credit fund. In 2020, commitments to reach net zero emissions from businesses have roughly doubled. The next step is now for impact investing to reach the shores of the fixed income market. We are committed to deploying an engagement strategy contributing to the global initiative for companies to achieve net zero emissions by 2050 or sooner and will seek to give our investors the opportunity to reach both ambitious financial and extra-financial goals through their fixed income allocation.”
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