Azimut’s Diversified Corporate Credit ESG-8 Fund Secures €30 Million Investment from EIF

Azimut’s Diversified Corporate Credit ESG-8 Fund Secures €30 Million Investment from EIF

(IN BRIEF) The European Investment Fund (EIF), with support from the InvestEU program, has committed €30 million as a cornerstone investor in the Azimut Diversified Corporate Credit ESG-8 fund. The fund, managed by Azimut Investments SA, aims to reach a target size of €500 million by 2024. As an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), it promotes environmental and social characteristics. The fund will provide medium to long-term debt financing primarily to Italian small and medium-sized enterprises (SMEs) and small mid-cap companies, supporting their investment and growth plans. The focus aligns with InvestEU priorities, including climate action, environmental sustainability, gender equality, and community development. The fund’s performance fee will be linked to environmental and social targets, such as carbon reduction and gender equality. The EIF’s commitment reflects its dedication to sustainable finance and responsible investments.

(PRESS RELEASE)  LUXEMBOURG, 8-Jun-2023 — /EuropaWire/ —  The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), supported by the InvestEU program, has announced its commitment of €30 million as a cornerstone investor in the first closing of the Azimut Diversified Corporate Credit ESG-8 SCSp RAIF fund. This fund, to be managed by a dedicated team within Azimut Investments SA, aims to reach a maximum target size of €500 million by 2024.

Designated as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), the Azimut Diversified Corporate Credit ESG-8 fund promotes environmental and/or social characteristics, aligning with the transparency objectives set forth for financial entities under the EU regulation.

Expected to launch in the third quarter of 2023, the fund will provide medium to long-term debt financing to Italian companies, primarily small and medium-sized enterprises (SMEs) and small mid-cap companies, supporting their investment and growth plans. The fund seeks to offer investors stable returns and risk diversification through a well-rounded portfolio of at least 50 companies.

The investment focus of the fund is in line with the priorities of InvestEU and the EIF, aiming to promote and enhance the environmental and social aspects of the borrowers. This includes fostering increased energy efficiency, facilitating the transition towards a circular economy, promoting gender equality, and contributing to the development of local communities. Notably, at least 30% of the underlying investments will advance climate action and environmental sustainability, while over 40% of the fund’s investment committee will comprise women.

Incentivizing sustainable investments, the fund’s performance fee will be tied to two environmental and social targets, or Key Performance Indicators (KPIs): achieving a net-zero transition by averaging a 5% reduction in carbon and greenhouse gas emissions annually, and actively working towards gender equality by maintaining a maximum gender pay gap of 5%, in accordance with the recently approved pay transparency directive by the European Parliament.

The EIF’s commitment as a cornerstone investor in the Azimut Diversified Corporate Credit ESG-8 fund reflects its dedication to fostering sustainable finance and supporting companies that prioritize environmental and social considerations. By driving capital towards responsible investments, the EIF continues to play a significant role in advancing the transition to a more sustainable economy.

EIF Chair Gelsomina Vigliotti said: “We are delighted to participate as a cornerstone investor in Azimut Diversified Corporate Credit ESG-8, a fund that targets some of the key priorities of the EIF and InvestEU, including sustainability and gender inclusion.”

European Commissioner for the Economy Paolo Gentiloni said: “InvestEU plays a vital role by facilitating financing access for small and medium-sized companies, enabling them to innovate, expand and create jobs. With this agreement, we are delighted to support businesses to unlock their full potential in this regard and contribute to Italy’s green transition.”

Giorgio Medda, Chief Executive Officer Of Azimut And Global Head Of Asset Management And Fintech, said: “Azimut is reaffirming its leadership in building alternative financial solutions that cater to SMEs in Italy and that are embedded in innovative private debt investment strategies. We are delighted that an institutional investor of the calibre of the European Investment Fund has decided to support one of the first diversified credit funds from an independent asset manager focused on Italian SMEs with an ESG profile.”

Background information 

The European Investment Fund (EIF) is a financial institution that is part of the European Investment Bank Group (EIB Group). Its main mission is to support European micro, small and medium-sized enterprises (SMEs) by supporting their access to finance and venture capital. The EIF is also active in supporting climate and infrastructure fund investments with a strong focus on environmental sustainability. In this role, the EIF pursues the objectives of the European Union to support innovation, research and development, entrepreneurship, growth and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Azimut is an independent global group in the asset management, wealth management, investment banking and fintech space, serving private and corporate clients. A public company listed on the Milan Stock Exchange (AZM.IM), the group is a leader in Italy and active in 18 countries around the world, with a focus on emerging markets. The shareholder structure includes over 1 900 managers, employees and financial advisors bound by a shareholders’ agreement that controls approximately 22% of the company. The remaining shares are free float. The group comprises various companies active in the sale, management and distribution of financial and insurance products, with registered offices mainly in Italy, Australia, Brazil, Chile, China (Hong Kong and Shanghai), Egypt, Ireland, Luxembourg, Mexico, Monaco, Portugal, Singapore, Switzerland, Taiwan, Turkey, the United Arab Emirates and the United States. In Italy, Azimut Capital Management SGR sells and manages Italian mutual funds and Italian alternative investment funds, and is also active in the discretionary management of individual investment portfolios. Furthermore, Azimut Capital Management SGR distributes group and third-party products in Italy via a network of financial advisors, while Azimut Libera Impresa focuses on the alternatives business. The main foreign companies are Azimut Investments SA (founded in Luxembourg in 1999), which manages the multi-strategy funds AZ Fund 1 and AZ Multi Asset, and the Irish Azimut Life DAC, which offers life insurance products.

Press contacts 

EIF: Lorenzo Squintani | l.squintani@eib.org, tel.: +39 366 57 90 312

Website: www.eib.org/press — Press Office: +352 4379 21000 — press@eib.org

European Commission: Flora Matthaes

Tel.: +32 229 83951

Email: flora.matthaes@ec.europa.eu

Azimut: Azimut Holding S.p.A. www.azimut-group.com

Media Relations: Maria Laura Sisti (Esclapon & Co.), tel.+39 347 42 82 170, email: marialaura.sisti@esclapon.it
Viviana Merotto, tel.: +39 338 74 96 248, email: viviana.merotto@azimut.it

SOURCE: European Investment Fund