BlueOrchard, a unit of the asset management firm Schroders, teamed up with Swiss wealth manager EFG to set up a fund for sustainable, social and green corporate bonds within EFG’s asset management group. The New Capital-BlueOrchard Global Impact Credit Fund is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation, which requires fund managers to demonstrate positive social and environmental impacts.
EFG’s Moz Afzal noted “growing investor demand for investment opportunities with a clear environmental and social focus.”
The partnership also signals growing interest from investors for impact opportunities in emerging markets, particularly in corporate bonds, which can provide yields higher than many fixed income products in advanced economies.
Fundraising for private market debt and equity is improving after two difficult years.