Private Debt

The Private Debt investment strategy applies Robeco’s sustainable investment knowledge such as the SDG framework, integrating ESG factors and setting ESG-linked KPIs. The strategy consists of a well diversified investment portfolio that provides attractive risk-adjusted returns by investing in private equity sponsored and non-sponsored transactions, in mid-cap companies predominantly active in the Netherlands. Target instruments are through mid-market leveraged loans, stretched senior loans and unitranche loans. The strategy will not invest in subordinated or unsecured instruments.

Robeco has a unique and long track record in the Dutch loan market: Bedrijfsleningenfonds (BLF) has invested over EUR 700 million across 40+ Dutch loan transactions since 2016 in a unique partnership with the main Dutch banks.

The Private Debt investment strategy benefits from the shift from bank lending to direct lending. It aims for higher risk-adjusted returns by investing in mid-market loans with stronger structural protections compared to large-cap leveraged loans and high yield bonds.

The experience of the investment team in private debt markets enables a build-up deal flow of sustainable investments through recycling existing private debt investments, commercial bank and advisor contacts and further private equity and corporate relationships.

The strategy is managed by a highly experienced team of private debt investment managers with a proven track record in sourcing and managing private debt investments. The team has over a decade of experience in integrating sustainability assessments into the investment process.

The Private Debt team is an integrated part of Robeco’s fixed income domain. The team benefits from the existing and broader Robeco’s infrastructure such as the Sustainable Investing Center of Expertise, Risk Management and Legal departments. It is further supported by a team of sector credit analysts and credit portfolio managers, comprising over 40 professionals.

Our inaugural private debt offering consisted of a Dutch loan portfolio (“Bedrijfsleningenfonds"), established in 2016 with EUR 724 million invested across 41 deals until Q1/2021. This strategy is currently in the harvesting period.

A key pillar within the Robeco 2021-2025 strategy is the development of a pan-European private debt platform. As an integral part of this we have a clear strategic goal to continue to strengthen our position as a Netherlands-based private debt manager and hence support the Dutch economy not only by financing local businesses but also by retaining financial talents, know-how and capital pools in the Netherlands.

This strategy promotes, among others, environmental and/or social characteristics, which can include exclusionary screening, ESG integration, ESG risk monitoring and active ownership.

We invest sustainably by selecting stable, future-proof business models that contribute to the SDGs according to our proprietary framework. In line with our deeply entrenched philosophy of aiming to contribute to wealth, well-being and a stable planet, sustainability is a core investment criterium. ESG assessment has been systematically integrated in our credit process since 2009.