SENNA

More Than a Dozen Limited Partners Back Impact Private Credit Strategies

Global asset manager Partners Group and private equity firm GI Partners have secured commitments from more than a dozen limited partners to back their impact-focused private credit strategies, according to people familiar with the matter.

The move highlights growing institutional investor appetite for private credit products that target environmental and social outcomes alongside financial returns. Asset managers are racing to meet this demand, developing specialized credit funds and strategies that aim to generate measurable positive impact.

Partners Group's impact private credit strategy, which launched last year, has raised over $1 billion from limited partners, the sources said. GI Partners' impact credit strategy, which debuted in 2021, has also secured substantial investor backing, though the exact figure could not be determined.

Representatives for Partners Group and GI Partners declined to comment on fundraising specifics.

The impact-oriented private credit strategies from the two firms focus on providing financing to companies and projects that are driving positive environmental and social change, the sources said. This could include investments in renewable energy, sustainable infrastructure, affordable housing, and healthcare access, among other impact themes.

"There is a lot of capital looking to be deployed into private credit strategies that can demonstrate measurable impact alongside financial returns," said one person familiar with the fundraising, who was not authorized to speak publicly. "Investors see it as a way to generate yield while also having a positive real-world effect."

The surge of interest in impact private credit comes as institutional investors face growing pressure from stakeholders to align their portfolios with environmental, social, and governance (ESG) principles. Many large pensions, endowments, and sovereign wealth funds have set net-zero emissions targets and other sustainability goals that require funneling capital into impact-driven strategies.

Industry analysts say the private credit market is well-suited to accommodate this demand, given the ability to structure bespoke financing solutions for companies and projects with strong social and environmental profiles.

"Private credit provides a flexible toolkit to invest in impact themes that may not fit the mold of traditional public market strategies," said the source. "It allows asset managers to get creative in deploying capital to drive meaningful change."