The primary way we approach impact investing on behalf of our clients is through private debt – that is, through privately-negotiated transactions rather than publically-traded bonds.
Private debt investments that generate clear environmental or social impact can be across a range of maturities and different asset types. For example, this could be a private loan to fund the construction of a solar park or wind farm, or new affordable housing, hospitals or university facilities.
Using private debt for impact investing can help pension funds, insurance companies and other institutional investors meet their long-term goals.
For more information on M&G's approach to responsible investment, please visit our corporate site.
Positive impact from private debt
In the video below, Richard Sherry, Director of Alternative Credit, explains how institutional investors who employ a private debt impact investment strategy can achieve positive social or environmental impact and competitive financial returns.