- Nuveen — the leading investment manager of TIAA with over $1 trillion in assets under management — announced its initial close of the Nuveen Global Impact Fund, LP. at $150 million
Nuveen — the leading investment manager of TIAA with over $1 trillion in assets under management — announced its initial close of the Nuveen Global Impact Fund, LP. So far, the private equity fund secured $150 million in commitments toward its targeted $400 million offering.
Nuveen’s Global Impact Fund is seeking to drive positive change in two critical sustainable development challenges: inclusive growth and resource efficiency. And the fund will target a 40-60% allocation to each theme.
There are six of the United Nations Sustainable Development Goals (SDGs) set out as part of the Paris Agreement, which will be supported by the Global Impact Fund: 1.) SDG1 (No poverty); 2.) SDG 2 (Zero hunger); 3.) SDG 3 (Good health and wellbeing); 4.) SDG 10 (Reduced inequalities); 5.) SDG 12 (Responsible consumption and reduction) and 6.) SDG 13 (Climate action).
And a combined focus on both investment performance and advancement on issues relating to the SDGs by the Global Impact Fund was an important motivation for the fund’s investors such as the Danish pension fund Velliv — which committed $50 million in capital.
There are millions of low-income families who currently lack the economic access to grow their income. And a lack of financial inclusion and access to education. And the healthcare risk holding back this group with over 1 billion adults currently have no banking of any kind. Plus 200 million small businesses globally lack access to working capital to grow and 250 million children have no access to education. In order to drive positive change against this backdrop, the Global Impact Fund is going to invest in inclusive growth to support the low-income consumer with a primary focus on emerging markets.
The Global Impact Fund investment team at Nuveen is going to pursue direct private equity investments across both themes. And the fund targets strong risk adjusted Private Equity returns. Plus the fund will target growth stage companies in developed and emerging markets that are at an inflection point where Nuveen can help them scale.
Currently, Nuveen manages over $5.8 billion in public and private markets impact investing strategies and is a pioneer in global impact investing with its first investment in this discipline dating back to the 1980s. And since then it has invested over $400 million in direct and indirect private equity capital across over 200 portfolio companies in alignment with the United Nations Sustainable Development Goals.
KEY QUOTES:
“The current global pandemic heightens the need for investment in mitigating accelerated climate change, pollution and waste, and in creating a more inclusive economy addressing inequality. Low-income individuals have been hit the hardest by Covid-19, further widening the equality gap as the lack of access to quality and affordable services like education, health and financial products is more starkly visible than ever.”
— Rekha Unnithan, CFA, co-head of private markets impact investing at Nuveen.
“We are seeing attractive investment opportunities at a time of tremendous dislocation in the economy, allowing us to collaborate with businesses focused on creating scalable and commercially viable products that are focused on solutions for people and planet.”
— David Haddad, co-head of private markets impact investing at Nuveen.
“Nuveen has been an investment partner of ours for several years and we are delighted to further strengthen our relationship. They are a pioneer in Impact Investing and its experienced team has a proven track record. Now more than ever, there is a compelling case for Impact Investing, and we believe this strategy provides us with an appealing market opportunity to achieve competitive returns, whilst ensuring we are also achieving measurable Impact goals.”
— Anders Stensbøl Christiansen, CIO at Velliv
“We are committed to this discipline as a growing part of our portfolio construction due to both its potential for positive financial results as well as its positive influence on society’s most pressing problems.”
— Nick Liolis, chief investment officer of the $270 billion General Account of Nuveen’s parent company (TIAA) — which also made a commitment to the Global Impact Fund’s first closing
