For LPs, private credit inspires both frustration and hope when it comes to sustainability
Depending on which allocator you speak to, private credit presents either a promising way to invest with impact, or sustainability's 'humungous gap'.
Expert analysis by Toby Mitchenall
In sustainability and impact investing circles, discussion about private credit is intensifying. The tone of these discussions, as evidenced at recent conferences in both the US and Europe, ranges from frustration to hope.
“Private credit, in the US at least, has grown exponentially, and the amount of impact – or even sustainability that’s integrated into investment processes – is completely lacking from what I can tell,” said one allocator at New Private Markets‘ Impact & Transition Investor Summit in New York in early November. “I know there are small players doing it, but at scale...