Case Study Private Credit

Overview of Asset

In 2023, our Private Credit strategy completed an investment in an EU-based leading automotive aftermarket retail service provider.  The borrower is operating an extensive network of auto centers, which provides aftermarket and maintenance products and services.

As part of this investment, our Private Credit strategy negotiated ESG-related loan covenants and is acting as one of the ESG coordinators among the lenders.

The objective of the loan covenants is to set ESG criteria, within the credit agreement, which will have the effect of reducing or increasing the interest rate applicable to the loan based on the evolution of these ESG criteria.

Given our role as a lender, our greatest opportunity to influence borrowers is through ESG related loan covenants.