Rekha Unnithan

Nuveen, a leading global investment manager with over US$1.2 trillion of assets under management, has announced the final close of the Nuveen Global Impact Fund, LP and affiliated entities (the “Fund”).

The Fund, which is the first private equity impact fund raised by Nuveen, has secured a total of US$218M from a diverse mix of global investors, with the aim of generating strong financial returns and addressing two of the greatest sustainable development challenges: climate change and inequality.

“Nuveen has been at the forefront of impact investing for decades, and there is an immediate opportunity to drive positive influence on some of world’s most pressing problems relating to climate change and inequality,” said Rekha Unnithan, CFA, co-head of private markets impact investing at Nuveen. “We are proud to build on our momentum from our initial fund closing in 2020 and look forward to engaging with more companies that meet our investors’ values and market views.”

The Fund will target investments that enable disruptive businesses to reduce waste and use resources in a circular manner, improving energy efficiency and reducing emissions. In addition, the Fund will target investments that expand access to and reduce the cost of basic products and services for underserved consumers. Nuveen takes an active approach to impact management, working with portfolio companies to both better understand the social and environmental outcomes of their companies’ products, services, and operations; and actively working with them to improve those outcomes.

Nuveen has also confirmed that leading Australian financial services group Perpetual has made a meaningful investment into the Fund.

“We are delighted with Perpetual’s meaningful investment to the Fund and appreciate the ongoing partnership between our firms,” said Andrew Kleinig, Managing Director, Head of Australia at Nuveen. “We are committed to further strengthening our impact investing capabilities and commitments globally and we look forward to assisting other Australian institutions with their impact investing objectives in the future.”

Nuveen is a pioneer in impact investing, with a strong track-record of driving strong financial results and an overall, positive influence for society’s most pressing problems. The firm made its first impact investment in the 1980s and has since invested over US$500 million in direct and indirect private equity capital across over 200 portfolio companies in alignment with the United Nations Sustainable Development Goals. Today, Nuveen manages over US$5.8 billion across all of its public and private markets impact investing strategies.

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Rekha Unnithan

Nuveen, a leading global investment manager with over US$1 trillion in assets under management, announced the initial close of its Global Impact Strategy. Open to institutional investors globally, it secured US$150 million in commitments toward its targeted US$400 million offering.

Nuveen’s Global Impact strategy seeks to drive positive change in two critical sustainable development challenges – inclusive growth and resource efficiency. The strategy will target a 40-60% allocation to each theme.

“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,” said 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,” said David Haddad, co-head of private markets impact investing at Nuveen.

Six of the United Nations Sustainable Development Goals (SDGs) set out as part of the Paris Agreement will be supported by the Global Impact strategy: SDG1 (No poverty); SDG 2 (Zero hunger); SDG 3 (Good health and wellbeing); SDG 10 (Reduced inequalities); SDG 12 (Responsible consumption and reduction) and SDG 13 (Climate action).

A combined focus on both investment performance and advancement on issues relating to the SDGs by the Global Impact strategy was an important motivation for investors, including the Danish pension fund Velliv which committed US$50 million in capital.

Anders Stensbøl Christiansen, CIO at Velliv, comments: “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.”

Millions of low-income families currently lack the economic access to grow their income. A lack of financial inclusion and access to education and healthcare risk holding back this group with 1.7 billion adults currently have no banking of any kind1; 200 million small businesses globally lack access to working capital to grow; 250 million children have no access to education and 50% of the population lack access to healthcare of any kind2. To drive positive change against this backdrop, the Global Impact Strategy will invest in inclusive growth to support the low-income consumer, with a primary focus on emerging markets.

At the same time, there is a requirement to build more sustainable and resilient communities globally. By 2050, it is predicted we will need the equivalent of three planets to sustain current lifestyles.3 To address this challenge the strategy will target investments enabling disruptive businesses that create efficiency and reduce waste, with a primary focus on developed markets.

The Global Impact strategy team at Nuveen will pursue direct private equity investments across both themes. The strategy targets strong risk adjusted Private Equity returns and target growth stage companies in developed and emerging markets that are at an inflection point where Nuveen can help them scale.

“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,” said Nick Liolis, chief investment officer of the US$270 billion General Account of Nuveen’s parent company, TIAA, which also made a commitment to the Global Impact strategy first closing.

Nuveen manages over US$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. Since then it has invested over US$400 million in direct and indirect private equity capital across over 200 portfolio companies in alignment with the United Nations Sustainable Development Goals.

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