The world’s oldest insurance and reinsurance marketplace, Lloyd’s, has launched the Lloyd’s Private Impact Fund on its market investment platform, and appointed Schroders Capital, the specialist private assets investment arm of Schroders, as its Portfolio Manager.
This new fund, which launches with a £250 million initial allocation for sustainably-focused assets, will invest globally across private equity, infrastructure, natural capital, and real estate targeting the long-term themes of climate mitigation, climate adaptation, circular economy, and social inclusion.
It’s the first fund to be launched on the Lloyd’s Investment Platform, which was announced last year as a way to help investors in the Lloyd’s marketplace generate attractive risk-adjusted returns on capital and access a wider range of investment opportunities.
In total, the specialist Lloyd’s re/insurance marketplace is supported by roughly £95 billion of globally-invested assets, while Schroders manages £122 billion of global assets for insurers.
According to Lloyd’s, the newly-launched Private Impact Fund builds on the investment partnership announced last year with Schroders Solutions, part of Schroders Group.
Lloyd’s Chief Investment Officer, Eleanor Bucks, commented: “I am really proud to be announcing the launch and initial investment in the Lloyd’s Private Impact Fund. This 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. The design of the fund is itself innovative, being open-ended in nature and categorised as an impact fund.”
John Neal, Lloyd’s Chief Executive Officer (CEO), 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 – which is why we were pleased to announce a £250 million initial investment into an sustainability-focused Private Impact Fund this week.”
Ajeet Manjrekar, Head of UK Client Solutions, Schroders Solutions, added: “We are very proud to be partnering with Lloyd’s on the launch of this innovative solution, which draws on the advisory expertise of our Schroders Solutions team and the private markets capabilities of Schroders Capital.
“In doing so, this Fund provides a single access point to a diversified multi-private asset portfolio covering private equity, infrastructure, real estate and natural capital. Each investment will be aligned to one of seven UN Sustainable Development Goals providing measurable social and/or environmental impact, alongside a financial return.
“This will be underpinned by Key Performance Indicators to measure and demonstrate effective progress and alignment to Article 9 Principles under Sustainable Finance Disclosures Regulation (SFDR).”
