Eiffel Launches €1 Billion Impact Debt Fund

Paris-based asset manager Eiffel Investment Group announced the launch of Eiffel Impact Debt III, the third vintage of its impact private credit fund, aimed at financing the growth of mid-sized European companies while accelerating their environmental and social transition, using impact objectives contractually embedded in the financing agreements.

The new fund is being launched with €500 million (USD$570 million) in commitments raised at the first close, with Eiffel targeting a fund size of €1 billion (USD$1.14 billion).

The new fund will provide senior debt financing to 40 to 50 European mid-sized companies through direct lending and co-investments, and following a similar defensive approach of previous vintages, emphasizes secured senior financing, moderate leverage, capital preservation, and attractive risk-adjusted returns.

According to Eiffel, the new fund is built around three impact pillars, including climate transition, ecosystem preservation, and diversity. As with previous vintages, each financing agreement will include Impact Covenants linking the loan’s financial terms to measurable ESG objectives.

Eiffel said that the new impact debt fund has already completed its first three investments, and has identified an investment pipeline of approximately €400 million with more than half of these opportunities relating to companies located outside France.

Fabrice Dumonteil, Chairman of Eiffel Investment Group, said:

“Consistent with the previous vintages, this third fund is built on our conviction that combining financial discipline with measurable impact helps sustainably enhance the performance of the companies we finance.”