ThomasLloyd unveils ELTIF to support long terms investors seeking dedicated impact solutions
Zurich, 4 October 2021 – ThomasLloyd, one of the world’s leading specialist impact investors and providers of climate financing, today announces the launch of its first European Long-Term Investment Fund (ELTIF), making the firm’s sustainable infrastructure offering access to even more investors across Europe, including eligible retail and non-professional investors and their advisers.
ELTIFs were created to offer investors long-term, stable returns and help stimulate investments in companies and projects that need long-term capital, such as infrastructure. The new ThomasLloyd SICAV – Sustainable Infrastructure Growth Fund (TL SICAV-SIGF) – focuses on investing in decarbonisation and energy transition investments across Asia’s high growth and emerging markets. The fund’s innovative structure offers the true benefits of real asset exposure, which includes lower volatility, superior risk-adjusted returns, and portfolio diversification via non-correlated assets to a broader range of investors, both institutional and non-institutional.
The fund leverages the expertise of ThomasLloyd’s award-winning infrastructure asset management team which has been investing in fast growing Asian economies, across multiple investment cycles, for over a decade. It also benefits from the firm’s established, on-the-ground networks in the countries where the firm invests and operates, as well as longstanding relationships with organisations such as the International Finance Corporation (IFC) and the European Investment Bank (EIB).
Following the ELTIF framework, the fund TL SICAV-SIGF is established for a limited period of time1. Unlike most traditional private equity funds with high minimum investment thresholds, the ELTIF was launched in response to a growing number of managers looking for a regulated vehicle to house illiquid assets with flexible redemption terms for distribution to private banks, high-net-worth individuals and pensions funds.
Michael Sieg, Chief Executive Officer of ThomasLloyd Group commented: “Since inception, the primary focus of ThomasLloyd has been to address the gap in and institutional need for project financing and long-term capital allocation towards sustainable infrastructures to combat climate change. As we have seen from the recent Intergovernmental Panel on Climate Change (IPCC) report – while we need policy support from governments, the private sector has a fundamental role to play in the fight to secure a liveable future for all. The launch of our ELTIF is the first European wide investment solution that will help fund the development of clean energy technologies in Asia to support the global green transition. The ELTIF provides a platform for investors wanting to invest their long-term capital in the real economy and have positive impact on the environment and communities.”
At a time when ESG and sustainable funds are becoming increasingly prevalent, ThomasLloyd continues to focus on delivering real impact.
“We have a pioneering position in impact investing and a proven track-record underpinned by our empirical database reporting, tracking and measuring the impact of our investments over the last eight years across metrics including employment data, gender ratio, health and safety data, security of electricity supply data, environmental statistics and information such as CO2 offset, GHG emissions, biodiversity information, details on water usage, and various wider benefits for local communities of having increased access to clean energy. We’re delighted to be bringing this expertise to a broader range of investors and provide them with the opportunity to capitalise on ThomasLloyd’s ‘triple return’ – delivering social, environmental and financial returns – at such a critical time.” Said Mr. Sieg.
The ELTIF complements the firm’s other investment solutions which include Green Bonds and the ThomasLloyd SICAV – Sustainable Infrastructure Income Fund (SIIF), which was awarded the prestigious LuxFLAG Environment label for the third year in a row and currently has in excess of €120 million of asset under management in the first half of 2021. As all ThomasLloyd funds are, the ELTIF is aligned to Article 9 of the EU Sustainable Finance Disclosure Regulation (SFDR).
ThomasLloyd is signatory to the UN Principles for Responsible Investments (UN PRI), supports various initiatives for sustainable investment such as the United Nations Environment Programme (UNEP), United Nations Global Compact, the Global Impact Investment Network (GIIN) and the Climate-Related Financial Disclosures Task Force (TCFD) the French Social Investment Forum (Forum pour L’investissement responsible) and the Swiss Sustainable Finance network.
1 No later than 31 December 2030. The term may be extended for up to two years under several conditions.