The Environment Agency Pension Fund (EAPF) has backed the Lombard Odier Investment Managers (LOIM) Sustainable Private Credit strategy, as part of its efforts to deliver real world impact in addressing the challenges of climate change.

The EAPF's commitment to the fund was announced following the first closing of the LOIM Sustainable Private Credit Strategy.

Commenting on the commitment, EAPF chief investment officer, Graham Cook, emphasised that the transition to a net-zero global economy will be “highly dependent on the targeted provision of debt financing to corporations to help them make the necessary changes to their business models”, highlighting this as a priority for the EAPF in its net-zero policy.

“We were delighted therefore to see the launch of Lombard Odier Investment Managers’ sustainable credit fund, with its focus on facilitating the transition using a science-based approach," he continued.

“We believe that the fund will provide the desired double bottom line of strong investment returns coupled with real world impact in addressing the challenges of climate change.”

The fund will provide primarily bilateral senior secured private loans to diversified North American climate transition-oriented industries.

It was designed to deliver tailored solutions-based structured liquidity within less-efficiently financed markets, while pursuing risk-adjusted returns thought to be less market correlated than traditional strategies.

EAPF's commitment to the fund was highlighted by LOIM head of UK & Ireland institutional sales, Ritesh Bamania, as "a great validation of [LOIM's] sustainability expertise".

Adding to this, LOIM co-head and managing partner, Jean-Pascal Porcherot, commented: “We are delighted that the EAPF has recognised LOIM’s expertise and credentials in sustainable investing.

"Peter Pulkkinen and Rhys Marsh joined LOIM last year to develop this innovative and impactful strategy, and its first closing marks an important step in LOIM’s strategic plans.

“We continue to further expand our sustainable investment offering across public and private markets with differentiated solutions that deliver sustainability outcomes and potentially attractive financial returns.”

The EAPF manages around £4.5bn on behalf of active and closed pension funds of the Environment Agency, a non-departmental public body sponsored by the UK’s Department for Environmental, Food and Rural Affairs.

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