Lloyd’s launches £250m sustainability and climate-focused fund with Schroders

Lloyd’s of London has launched a fund on its new Schroders-managed investment platform with an initial £250 million allocation that will enable the market to invest globally in sustainability-focused assets around climate mitigation, climate adaptation, circular economy and social inclusion.

The newly-launched Lloyd’s Private Impact Fund will invest globally across private equity, infrastructure, natural capital and real estate. It is the first fund to be launched on the Lloyd’s Investment Platform,
which was set up to help investors in the Lloyd’s market generate attractive risk-adjusted returns on
capital and access a broader range of investment opportunities, including private assets.

The launch follows Lloyd’s investment partnership with Schroders Solutions, part of the Schroders Group, last year.

The Lloyd’s market is supported by around £95 billion of globally-invested assets and the Lloyd's Investment Platform is designed to provide investors with access to opportunities, value for money, and operational efficiencies through investing collectively. Schroders manages £122 billion of global assets for insurance companies.

Eleanor Bucks, chief investment officer at Lloyd’s, said: “I am really proud to be announcing the launch and initial investment in the Lloyd’s Private Impact Fund. This is a great example of the impact that insurers can have in addressing climate change and reflects Lloyd’s convening role in leading the Sustainable Markets Initiative Insurance Task Force.

“The design of the fund is itself innovative, being open-ended in nature and categorised as an impact fund.”

John Neal, CEO of Lloyd’s, said: “Lloyd’s has committed to be the insurer of the transition to net zero, providing both the capital and the capability to enable industries and economies to build a sustainable future.

“The insurance industry has a critical role to play insuring the risks associated with transition, and providing the investment to accelerate progress – which is why we were pleased to announce a £250 million initial investment into an sustainability-focused Private Impact Fund this week.”

Ajeet Manjrekar, head of UK client solutions, Schroders Solutions, said: “We are very proud to be partnering with Lloyd’s on the launch of this innovative solution, which draws on the advisory expertise of our Schroders Solutions team and the private markets capabilities of Schroders Capital.”

“In doing so, this Fund provides a single access point to a diversified multi-private asset portfolio covering private equity, infrastructure, real estate and natural capital. Each investment will be aligned to one of seven UN Sustainable Development Goals providing measurable social and/or environmental impact, alongside a financial return.”

“This will be underpinned by Key Performance Indicators to measure and demonstrate effective progress and alignment to Article 9 Principles under Sustainable Finance Disclosures Regulation (SFDR).”

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