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Amundi Real Assets' Newsletter
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IPE Real Assets | January-February 2022 Renewables: Investors need to do more than just build
In the Press
8'
February 2022 Amundi, the voice of the financial industry February 2022 Outlook 2022
Top Linkedin Posts
Video
Video by Stanislas CUNY, Director of Private Equity, Amundi Real Assets: Invest in hidden European champions of industry and services.
4'46"
Looking Back
February 2022 | ESG Amundi, the voice of the financial industry
Top Linkedin Post
MIPIM is the largest international market for real estate professionals which takes place every year in March in Cannes. This year it will take place from 15th to 18th March, at the Palais des Festivals. Amundi Immobilier will be there as an organiser - alongside CA Immobilier and CACIB - on the Seaview Village terrace (Riviera 9, R9.L). The event will include exhibitions, conferences and the MIPIM Awards to celebrate the most outstanding real estate projects. If you wish to attend, you can still register.
Video aimed at an institutional audience only
October 2021 2021 Alternatives in Europe Preqin report October 2021 - IPEM 2021 Find out more on the correlation between ESG and financial performance. October 2021 why now could be a good time to invest in Private Debt
Top 3 Posts
At the MIPIMWorld, the international market for real estate professionals, Marc Bertrand, CEO of Amundi Immobilier, was invited by Business Immo to present on BiTV around the diversification strategies of Amundi Immobilier.
3'59"
Looking back
appointed to the position of Deputy Director of the Real Assets business at Amundi.
Lionel PAQUIN
Our People
appointed to the position of Chief Responsible Officer at Amundi Real Assets.
Sandrine LAFON-CEYRAL
Private Debt : 21/04/2022 Real Estate : 11/05/2022
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Faced with unprecedented ecological and societal challenges, Amundi Actifs Réels makes responsible investment an imperative.
Deep Dive
Responsible investment, the DNA of REAL ASSETS
Responsible investment, the DNA of Amundi REAL ASSETS
Financing and supporting the growth and development of companies with a particular focus on ESG
Expert View
AMUNDi REAL ASSETS at the heart of amundi's ESG Ambitions
Partner at Deloitte Sustainability France
One on one with…
nicolas de jenlis
NICOLAS DE JENLIS
READ THE ARTICLE
Discover how the companies which Amundi Real Assets invests in, are working for a more sustainable world.
7 testimonials of ESG commitments
Spotlight on
IPE March-April 2022 Marc Bertrand CEO of Amundi Real Estate
How real estate investment creates opportunities in this post-crisis environment?
Find out why the Amundi Senior Corporate Debt team has chosen to support the Vivonio group in its development since February 2022.
Vivonio, a furniture company focused on ESG !
At Work
Two years after the Covid-19 crisis began and global awareness emerged about just how fragile...
“Real assets are a ‘short-hand’ for ESG.”
Big Picture
What you missed this summer
2021 Responsible Investor Report
2021 Responsible Investor Charter
special edition
ESG
Impact investing is an effective tool for contributing positively to the environment and society.
Private assets: new investment horizons for retail investors
ELTIF 2.0 reform: major progress
It is time for transitions to be made
Private markets: an opportunity for all
CEO of INDEFI
Richard Bruyère
Responsible Investor 2021 Charter
SPECIAL Edition
Social - Health - Wellness
Discover Amundi’s investments within CASTALIE, through our dedicated French Impact Fund.
Social Impact | December 2022
Amundi Immobilier is pleased to announce the launch of its new SCPI: Amundi Delta Capital Santé.
Real-Estate | December 2022
Le Monde - 8 December 2022
Solidarity savings: "Financial performance varies from one sector to another How does a 100% solidarity investment fund work? Laurence Laplane-Rigal, Head of Social Impact investing at Amundi, explains.
Amélie Dupraz
appointed to the position of Head of Marketing and Communications, Amundi Real Assets
Alexandre Mendelewitsch
appointed to the position of Head of Institutional Sales, Amundi Real Assets
Washington Post | 17 sept 2021 Yield Seekers Turn to Infrastructure, Real Estate and More
La presse en parle
Vidéo
Marc Bertrand, Directeur Général d’Amundi Immobilier, était l’invité de Business Immo sur le plateau de BiTV afin d’évoquer les différentes stratégies de diversification d’Amundi Immobilier.
LOOKING bACK
Les médias parlent de nous
53'
Le Monde - 8 décembre 2022
Epargne solidaire : « La performance financière varie d’un secteur à l’autre » Comment fonctionne un fonds d’investissement 100 % solidaire ? Les explications de Laurence Laplane-Rigal, directrice de l’investissement à impact chez Amundi.
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EUROPEAN PRIVATE MARKETS NOW WITHIN REACH
Through its platform of solutions, Amundi Real Assets offers its retail customers the possibility to seize opportunities in European private markets.
Amundi Private Equity Funds partners with Meanings Capital Partners to boost growth of Big Data leader, Jems
We are proud to invest through Amundi Energy Transition in Hexagon Energy, an independent power producer with 13 years of experience in developing, operating, and investing in renewable energy.
Infrastructure | March 2023
How to integrate biodiversity issues into real estate in France?
Real Estate | January 2023
Amundi's Private Debt team has contributed to the writing of " ESG practice guide" for private debt financing. Read the guide published by France Invest
Private Debt | March 2023
Top of publications
The Hekla Tower, located in the heart of the emblematic La Défense business district, has announced the name of its second tenant: a well-known company will be moving in at the top of this architectural icon.
Real Estate | June 2023
see the publication
Amundi Transition Energétique is proud to contribute to building a more sustainable energy future by participating in the Silversun group's capital increase alongside Crédit Agricole Alpes Provence Transitions and SOFIPACA Capital Investissement.
Infrastructure | June 2023
Read more
The Amundi Energy Transition teams had the opportunity to visit the Biomasse site in Lens in the company of Dalkia teams.
Antoine Aubry
Follow Antoine Aubry on
appointed to the position of Global Head of Fund Management (Institutional & Retail) at Amundi Immobilier
Our people
appointed as Head of European Bank Loans at Amundi
Desmond English
appointed to the position of COO of Amundi Real Assets and Deputy Head of Amundi Real Estate and Amundi Private Equity Funds.
Hélène Soulas
Forest management must adapt to environmental issues
The forest sector, a sustainable green asset
ELTIFs are moving into high gear. The regulation of these European funds is about to be reformed...
AccELERation
ACCELERATION
3'18"
April 2022 Discover Max&Moore and its 9,800 m2 of inspiring office space, located in a former industrial area in the heart of Buiksloterham, a vibrant mixed-use neighborhood on the northern banks of the Amsterdam IJ.
Max & Moore : an example of an innovation from an environmental prospective
23'24"
April 2022 Watch the video to find out more from Thomas Bernard, Director of LMB Fans & Motors, and Christophe Somaini, Partner at Amundi PEF, interviewed by Bruno Ducastel, Deputy Head of Product Sales Specialist at Amundi Real Assets.
Amundi Private Equity Funds gives the floor to Directors of SMEs that we support
Private Debt : 04/21/2022 Real Estate : 05/11/2022
has been confirmed as General Secretary of Amundi Real Assets and appointed Head of the Compliance Department. She also joins the Amundi Real Assets' Management Committee.
Cindy KHOY
appointed to the position of Head of Marketing Communication at Amundi Real Assets
Caroline TESIO
Multi-management is a way to raise large sums and target strong returns ...
Multi-management to meet the challenges of today (and tomorrow)
The Czech Republic, a country that is always a step ahead with new developments, launches a unique ELTIF fund on the market.
FRANCK DU PLESSIX
Others
offers a regular look at the latest activities and trends in Amundi Real Assets’ various areas of expertise. Our aim is to share a little of what our 220 team members do every day, our news, and our flagship transactions, as well as our ESG and impact commitments.
Convergence,
Timothée Jaulin, Responsable du développement ESG pour Amundi
Thierry Vallière, Directeur de la Dette Privée
Dominique Carrel-Billiard Head of Real Assets at Amundi
LAST PUBLICATIONS
december, 2021
BIG PICTURE
Real assets, spearhead of tomorrow’s economy
ONE ON ONE WITH
EXPERT VIEW
Real estate faces the challenge of the transition to carbon neutrality
DEEP DIVE
Amundi Private Equity Funds acquires a stake in Sandaya
AT WORK
FoodCub, the first food incubator in Marseille
SPOTLIGHT ON
Les dernières publications
fEBRUARY, 2022
of Amundi Real-Assets Engagement
Claire Chabrier The chairman of France Invest
Outlook 2022
The Net Zero challenge: accelerating the development of renewable energies
The builgind Coeur Défense reinvents itself to welcome 3,500 students
at work
Ecodrop and the "Epopée", 2 initiatives that work for the common good
LATEST publications
April, 2022
of Amundi Real-Assets Acceleration
Franck Du Plessix CEO of Amundi Czech Republic
Lionel Paquin Deputy Head of Amundi Real Assets
Olivier Paquier, Head of Business Development and ESG at Amundi Real Asset
(1) Source: InvestEurope, WorldBank and Amundi.
Useful for our customers and encouraged by new regulations, this appropriation of unlisted assets by a non-professional and more fragmented customer segment is an innovation, and a challenge, which will require solidity and experience. Innovation will be a key factor for adapting this asset class to our customers’ needs: evergreen products, semi-liquid products, multi-asset portfolios, structures eligible for life insurance and retirement savings, impact funds, etc. Major work in educating customers will also be essential to prepare savers for investing this type of assets, which is less liquid and different from listed assets. Apart from the information and advice due to customers and distributors at the time of the investment decision, the quality of reporting (financial and extra-financial) and of operational management will be differentiating factors. Amundi Real Assets already offers its products and services to a large number of distributors and, through them, to retail clients. Backed by its global network, its long experience in serving its clients, its ability to innovate and constantly generate more value, Amundi intends to play a key role in the current ‘democratisation’ of private markets funds.
Over 60% of European companies and 85% of US companies with sales of more than $100 million(1) are not listed. As they represent a substantial part of the global economic and financial activity, private assets naturally have a place in all investment portfolios, especially portfolios with medium and long-term investment horizons. Unlisted funds cover a vast range of assets, some tangible – or “real” - such as real estate and infrastructure, and some rooted in fascinating industrial and entrepreneurial stories (private equity and private debt). As a ‘shorthand’ for investment and ESG, they provide for profound knowledge of the underlying assets, are selected and managed on a basis of close proximity that benefits their financial and extra-financial performance. For many years, these characteristics have given private assets a logical and significant place in the strategic allocation of institutional investors, which often, in the face of insurers and pension funds, act in the benefit of individuals (policyholders, members or customers). At a time when individuals are looking for long-term, diversified and meaningful investments and need them in their portfolios, these funds are undergoing a ‘democratisation’ and are steadily penetrating retail offers.
Private Markets: an opportunity for all
This year, we have been working to formally define our ESG commitments more explicitly in order to provide our staff, partners and investors with a clearer picture of the manner which we select and support our investments in. We thank them all for their commitment and encourage them to pursue their initiatives, by leading by example. With this in mind, we will continue to better integrate ESG and sustainable investment criteria. In practice, this starts with the development of new impact solutions and the achievement of net zero targets. Our priority for 2025 is to have a 100% coverage rate for our portfolio investments in terms of carbon footprint measurement, and to ensure that, however segmented and varied these investments are, they incorporate a collective quantified emissions reduction approach through the implementation of necessary tools. Lastly, this first responsible investor report is also an opportunity to set a benchmark that, going forward, will enable us to measure our progress year after year. We have already started to work on key milestones, such as the certification process for real estate funds, the launch of an impact fund in corporate private debt, the financing of renewable sources of energy via Amundi Transition Énergétique, and social impact initiatives through our Amundi Finance & Solidarity fund. However, there are still many actions left to take in order to expand these practices across our entire asset base. This report will be a testament to our ongoing commitment to rise to such a challenge.
Two years after the Covid-19 crisis began and global awareness emerged about just how fragile our environment, our society and our governance methods are, finance will, by all accounts, have to play a key role in building a better world. There is quite a lot of demand in terms of public opinion for finance to serve as a lever for building a more sustainable world. Real assets will be one of the main pillars of this new ecosystem. They are seen as a way to address global economic challenges and meet the performance and impact criteria of institutional and retail investors. Real assets are a direct means to positively shape the world we live in. The energy transition, the digital transformation of economic activity and commerce, the redesign of supply chains, etc. These are all major challenges as we exit the public health crisis. Real assets, managed closely with operators and firmly rooted in our local areas, can address these issues through a deliberate impact-based approach. By contributing to the financing of green infrastructure with no ‘middleman’, providing access to corporate governance in order to directly influence social and environmental responsibility decisions, and ensuring that impact investments have a solid financial base, real assets are a ‘short-hand’ for ESG, embodied by Amundi Real Assets in all our businesses.
Real assets are a ‘shorthand’ for ESG
(1) European long-term investment funds (2) ELTIFs carry a risk of capital loss. ELTIFs are illiquid by nature because they are a long-term investment. For the investor, they are a low liquidity investment. As a result, ELTIFs may not be suitable for retail investors that are unable to maintain an illiquid commitment over the long term. If redemption requests cannot be honoured, the investor may have to hold on to the investment for longer than initially envisaged. (3) Source: Amundi, end of March 2022
ELTIFs focus substantially on real assets: under the current regulation, at least 70% of their assets must be invested in unlisted assets. As such, the development of these funds should speed up the creation of a genuinely comprehensive European market for real assets. ELTIFs benefit from the trends underlying unlisted assets, potentially offer a higher return in compensation for the risks associated with this type of investment² , with lower exposure to inflation and volatility risks, and growing interest among investors. Amundi Real Assets has its own funds of this type which it created before the planned regulatory amendments. Already present in France and Italy with several private equity and private debt ELTIFs comprising nearly €500m³ of assets under management, we are now leveraging our know-how and many years of experience in real estate investment funds to propose our first pan-European real estate ELTIF. It is intended for eligible retail investors pursuant to the ELTIF regulation; marketed in the Czech Republic since April 2022, from today it will be marketed in all other European Union Countries through registered local distributors.
ELTIFs¹ are gathering momentum. The regulation governing ELTIFs is about to be amended to simplify access to these funds for investors (with soon no more double threshold of a minimum investment amount of €10,000 and a maximum aggregate investment of 10%) and thus speed up their development. The European regulator and governments want to see the emergence of a deeper, broader and more unified capital market. ELTIFs are central to this as they require only a few weeks to obtain marketing authorisation and can be easily exported across countries. There is no need to seek individual regulatory approval in each country. Once authorisation has been obtained from the supervisory body of one country, pan-European marketing can go ahead. The investment rules will also be relaxed to make it easier to invest in ELTIFs, partly via alternative investment funds (AIF).
April 2022
Olivier Paquier, Head of Business Development & ESG at Amundi Real Assets
(1) The French ISR label is awarded to funds that pursue a socially-responsible investment (SRI) strategy and methodology that are both rigorous and ambitious. Three French state-certified external audit bodies award the ISR label and verify results. (2) Global Real Estate Sustainability Benchmark. GRESB is an international ESG assessment organisation for the real estate industry that brings together more than 1,200 management companies in more than 64 countries and has assigned a rating to 96,000 buildings across the world.
Amundi Real Assets’ commitment to ESG is not new. Our finance and solidarity fund, which celebrates its tenth anniversary in 2022, is one of the finest symbols of our efforts. It is the largest social impact fund in France, with nearly €450 million in assets under management, financing 46 social enterprises that work to provide housing and employment and to preserve natural resources. We are always looking at new ways to imagine our funds. The new vintage of our private debt fund - Amundi Senior Impact Debt IV (ELTIF) - requires all the European mid-caps we finance to carry out a carbon emissions assessment so that an action plan can be developed to cut their GHG emissions rapidly and in a controlled manner. This addresses the key issue of ESG data in the universe of unlisted small- and mid-caps. The ISR label has now been awarded to our three largest real estate funds and we have also received international recognition for our commitment from GRESB, which recently assigned a 5-star and a green star rating to OPCIMMO. By thinking bigger and taking things to the next level, we will be looking to grow inflows on a European level starting in 2022 with Realti, launched this quarter. Realti, which will be the first retail real estate ELTIF, has been designed to finance the creation and development of new sustainable neighbourhoods, so as to play a part in building the cities of the future on a European scale.
As 2022 gets off to a start, Amundi Real Assets is proud to announce that two funds managed by Amundi Immobilier have just secured the French ISR label : SCPI Rivoli Avenir Patrimoine and SCPI Edissimmo. Just like the previous ones, these two new certifications are a further testament to our commitment to sustainable investment. Amundi Real Assets is as eager as ever to continuously innovate in terms of ESG, whether by launching new funds or enabling existing ones to evolve. To secure this ISR label, we had to make these funds even more responsible and we are working on a three-year action plan to systematically improve the sustainability rating of our properties. We take steps to ensure that our properties consume as little energy as possible, we opt for wood frame structures when building them and we plant gardens and vegetable patches and install beehives on their roofs... These are just a few examples of the many actions we take to make our buildings more sustainable.
February 2022
COMMITMENT
In 2016, Amundi launched an integrated division covering the four major real assets’ asset classes (real estate, private debt, private equity and infrastructure), through direct or indirect investments, and including a dedicated impact investing team. In the current environment, savers and institutional investors alike are looking for both performance and impact, which is precisely what real assets can offer. Therefore, there’s an obvious need to make these asset classes more accessible. This is where our Convergence newsletter comes in, and we are excited to present this first issue! Why "Convergence"? Our aim is to share a little of what our 220 team members do every day, our news and flagship transactions, as well as our commitments to ESG and impact investing. We wish that this newsletter becomes a link between Amundi Real Assets’ teams and its institutional and retail investors, but also our portfolio companies and all our business partners. We would love to hear from you! Don't hesitate to contact us. Happy holiday season and we look forward to getting in touch with you again in the New Year!
December 2021
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Thierry Vallière, Global Head of Private Debt
The Deal
The Statistic
A Look Back
Marc Bertrand CEO of Amundi Real Estate
What is your investment philosophy? There is no magic formula! The important thing is to have a structured and robust investment process and to have an excellent understanding of the businesses that we support over the long term. We look at the competitive positions, possible barriers to entry, diversification of customer and supplier portfolios, capital intensity, ability to generate cash, and so on. Lastly, we pay particular attention to the quality of the management team that run the projects we finance. The role of our ESG analystsis also vital. We finance companies over the long term and so there is no question of positioning ourselves in companies with poor governance or activities that present social or environmental risks. Impact investing addresses a genuine demand from institutional investors, in both equity and debt. Is Amundi’s involvement in this area a pioneering model? Is impact becoming a key criterion? Contrary to a common misconception, ESG is not less developed in the private segment than in the public segment. It is simply access to extra-financial data that is often more complex in private markets given the diversity of situations, including different company sizes, jurisdictions and ownership structures. We have a long experience on these issues due to our long-dated investments in private assets. Since 2014, ESG has been formally integrated into our investment processes. There’s an ESG analyst associated to each work stream on a deal, with a veto right at the investment committee . It is my belief, on this vital issue, that within five years, ESG criteria will be systematically included in the calculation of a company's cost of risk in the same way as its financial structure or business profile. Ten years ago, when these concepts were still emerging, the main approach was exclusion. Subsequently, the approach was stretched further, with a second phase more focused on identifying and mitigating social, climate and governance risks. Today, the new paradigm is impact. We are now seeking to improve the ESG practices of our investee companies and to determine, in collaboration with their management teams, appropriate, measurable and sufficiently ambitious indicators on issues such as carbon footprint, gender equality, training, and so on, in order to measure the progress made during the time of our investment. The search for impact is at the heart of our new private debt fund, for which we have set a target of €1 billion to be raised by the end of 2022.
ELTIF 2.0 reform: Major steps forward
Olivier Paquier, Head of Development Real Assets
Elodie Laugel, Head of responsible investment at Amundi
Head of Development & ESG at Amundi Actifs Réels
Sofia Donatone Private Debt Team, Italy Amundi Actifs Réels
Investing in healthcare real estate, a powerful lever for action
AMUNDI REAL ASSETS AT THE HEART OF AMUNDI's esg ambitions
The year has begun under the shadow of the ongoing Covid-19 crisis with consequences on global growth, inflationary tensions and on uncertainty as to whether central banks will coordinate their efforts and their impact on interest rates as well as exchange rates. 2022 will also be a critical tipping point in the shift towards carbon neutrality and the development of a model for growth that is more sustainable and inclusive. In this environment, - How are real assets and private markets set to play a major role in investors’ portfolio? - What are the market trends and opportunities for private markets for the year ahead? - How do Amundi experts see 2022 regarding the decarbonisation of the economy? - And what is their overall outlook for real assets? In this Outlook 2022 video, Dominique Carrel-Billiard, Global Head of Real Assets at Amundi, shares his views on how real assets could yet again prove to be “the winning bet” for investors in 2022.
Dominique Carrel-Billiard, Global Head of Amundi Real Assets
Financing major transitions through private debt
With €8 billion in assets under management, Amundi Real Assets is a major player in private debt in Europe¹. Thierry Vallière, Global Head of Private Debt at Amundi, describes the main challenges associated with this asset class, which has a special relevance during a recovery phase. What are the features of private debt? What makes Amundi Real Assets a leading player in this asset class? One of the purposes of private debt, which is now a mature market of more than €100 billion¹ in Europe, is to finance the real economy over the long term and to support the development as well as the sustainable and profitable growth of companies. As such, it is an important element in financing the recovery as well as major digital and ecological transitions. Finally, companies appreciate the diversification it provides (institutional investors, bullet repayment, long maturities, etc.), the flexibility and speed of execution as well as lower volatility than in public markets. As a major player in the private debt market in Europe², with more than €8 billion in assets under management¹, we have privileged and demonstrated access to the real assets that we support, with more than €1 billion invested per year on average across 30 companies¹. Lastly, we are extremely selective in constructing our portfolios. We have a robust investment process that has been tested through the cycles. On average, we invest in one project out of every 15 we examine, which considerably reduces the cost of risk and offers an extremely modest loss rate. What was the impact of the health crisis on this asset class? How have Amundi’s portfolios held up? It was precisely because of this selective approach that we have been able to build diversified and resilient portfolios. They weathered the crisis well because we had limited exposure to the most affected sectors, such as distribution hospitality and tourism³. We have also been able to support the most affected companies and to find constructive solutions with our partners, whether through new money or temporary adjustments to covenants. Overall, we had no credit incidents over this period thanks to a proactive and preventive management of difficulties, a proof that the protection mechanisms we had put in place, particularly legal ones, did their job,
1 Amundi 2021 Septembre 30 2 Source: Amundi ranks #10 among Europe’s biggest asset managers (Preqin 30/09/21) 3 7% of our assets were invested in it, representing only 2% of our AuM
offers a regular look at the latest activities and trends in Amundi Real Assets’ various areas of expertise. Our aim is to share a little of what our 250 team members do every day, our news, and our flagship transactions, as well as our ESG and impact commitments.
What would it take to make these asset classes more accessible to retail investors? Today, real assets and private markets are a key component of the economy and asset management, but they remain difficult to access, especially for retail clients. Demand for investment products that democratise these asset classes among retail clients, particularly in connection with their retirement savings, is gaining momentum in Europe. In a context of post-Covid stimulus programmes and support packages for SMEs and SMIs, public authorities are likely to support a political and regulatory environment that makes it easier to channel savings into funds invested in infrastructure, private equity or private debt. Obvious contenders are ELTIFs (European Long Term Investment Funds), whose format could evolve in 2022 to enable retail investors to access these asset classes. This should accelerate the emergence of new distribution channels, and Amundi is in a strong position here thanks to its partnerships with powerful European banking networks. At Amundi Real Assets, we are working hard to make private markets transparent and comprehensible, and to democratise access to them. How can real assets contribute to the transition to carbon neutrality? Because they facilitate the direct investment of capital into large-scale projects, real assets can finance major infrastructures in the areas of renewable energy or green real estate. The European Union’s new environmental targets – in particular carbon neutrality for all members by 2050 – could lead to a three-fold increase in the volume of renewable energy investments over the next ten years. Real assets are therefore the ideal tool to meet this challenge and achieve net zero targets. As such, it is crucial to make them accessible to a wider range of investors, including households.
The appropriation of real assets by retail investors
video recorded on 21 June 2023
Indefi is a strategy consulting firm that provides asset managers – from the top 10 largest global firms to boutique and private market specialists – with an actionable roadmap to achieve their growth objectives. Operating across Europe and the U.S., Indefi maintains both a global view and deep local market expertise. The firm’s guidance, grounded in conviction and insight, spans growth strategy, market entry, product development and enhancement, sustainability, and M&A support. For more information, please visit www.indefi.com.
The Energy Transition: how can finance help tranform territories?
CEO of the Champagne Bourgogne regional bank
emmanuel vey
"ESG now plays a role in investors’ decision-making processes"
Maïlys Cantzler
CEO of Homnia
CEO of Amundi Czech Republic
THE STRONG GROWTH OF PRIVATE EQUITY, AN ASSET CLASS THAT IS BECOMING MORE ACCESSIBLE TO RETAIL INVESTORS AND THAT IS PLAYING A KEY ROLE IN REVIVING THE ECONOMY
CLAIRE CHABRIER
Chairman of France Invest
Dominique carrel-billiard
Global Head of Amundi Real Assets
Despite the disruptions to the economy caused by the health crisis, private markets are heading for a record year for fundraising in 2021. Dominique Carrel-Billiard, Global Head of Amundi Real Assets, shares the strengths of unlisted asset classes in a world in transition. How do you define real assets? What sets them apart from other asset classes? Our definition of real assets encompasses the various assets that are not traded on a regulated market – hence also the term private markets – and which are used to directly finance the real economy. They offer purposeful investments in very concrete projects. At Amundi Real Assets, we offer four major real asset classes (real estate, private debt, private equity and green infrastructure) through direct or indirect investments, and also have a dedicated impact investing team. The differentiating factors between real assets and listed equities or bonds include their low volatility, contribution to diversification within a portfolio of financial assets and resilience to inflation. This makes them particularly attractive in the current environment of uncertainty regarding growth and inflation in our economies. On that subject, what have been the effects of the global health and economic crisis on Amundi Real Assets’ various areas of expertise? Thanks to the strengths I have just mentioned, as well as risk return prospects that remains among the most favourable in the universe of investable assets, real assets have generally held up well in the crisis and are certainly a " winning bet " in the post-Covid world. According to Amundi’s research, over the next ten years, private markets have the potential to offer 200-500 bps higher returns than listed securities, depending on the asset class (for more information, read Investment Insights Blue Paper – Real assets favoured in a post-Covid-19 world, but higher fragmentation requires scrutiny)¹. The latest Preqin report on private markets in Europe, published in collaboration with Amundi, reveals that the assets under management of European real asset fund managers grew by nearly 19% in 2020 to €1.486 trillion² (visit our website to find out more and download the report). Beyond their financial qualities, real assets can help meet the major challenges posed by the Covid recovery by offering direct financing capacity for the socio-economic transformations that lie ahead of us, including energy transition, digitisation of economic and trade activity and the overhaul of supply chains. Real assets offer a direct lever to steer capital into projects and businesses that reflect a broader social and economic agenda. This is exemplified in the stimulus plans of the various governments in developed countries, particularly with regard to infrastructure.
1 Investment Insights Blue Paper – ARA Outlook, August 2021. Source: Amundi CASM Model, Quant Solutions and Research teams, Bloomberg. Data as of 20 April 2021. 2 Excluding hedge funds. Source: 2021 Alternative Assets in Europe report, produced by Preqin in collaboration with Amundi. 3 Source: AFG, 30 September 2021
Impact investing: levers to move towards a just transition
This regulatory framework requires rigorous training of the distribution networks. “Distributors must have the necessary information to explain the issues at stake when investing in real assets, starting with the fact that there is no short-term liquidity,” says Claire Chabrier. Alongside the major market players, market bodies such as France Invest have also rolled out educational initiatives to drive the market set-up. New investment prospects Opening these asset classes to retail investors is a new source of growth for asset management firms. “Retail is a recent lever and there still are very few dedicated funds,” says Lelia Raynard. “At Amundi Transition Energétique, we seek to capitalise on this trend by offering new products for retail investors, including a fund distributed in private banks and a fund dedicated to employee savings that enables us to offer a diversification pocket to our clients.” In private debt, accessibility of new funds offers a means of investing in types of businesses and assets that are only available in private markets. “These assets play a direct role in financing the real economy and enable a diversification of portfolios, by investing in assets that are not found in the traditional public markets,” explains Thierry Vallière, Head of Private Debt at Amundi Real Assets. For Guy Lodewyckx, Head of Private Markets Multi-Management at Amundi Real Assets, this market momentum is radically changing the map of investment opportunities in Europe. “Before this, some products were available to retail investors but only within a local framework,” he explains. “In France for example, we have for a long time been able to invest in private equity products offering tax advantages.” More flexible regulations enable this type of investment to become more widespread in a new framework: “Version 2 of the ELTIF regulation provides a pan-European framework, both for managing and marketing financial products. This enables larger asset management firms, such as Amundi, to launch a single product that can be marketed in several countries.” Harmonising the European regulatory framework enables investment rules and liquidity management to be more widespread: where before, each country had its own requirements, the rules are now the same for all. “It is now technically possible to create and market products throughout Europe(5)”, says Guy Lodewyckx. Private equity has been recording strong growth over the past few years. “€25.5 bn were raised in 2022. “Individuals and family offices are now the largest investors, with €6 bn, which is twice as much as in 2020,” points out Claire Chabrier. These figures reveal a deep-rooted trend whereby retail investors, whatever their profiles, are taking a new place in private equity. “These funds are open to retail investors and give them access to types of investment that were historically reserved for institutional investors. These investments offer higher returns and are meaningful,” outlines Claire Chabrier.
Under the new regulations such as the PACTE(1) law and, more recently ELTIF 2 (2), retail investors now have greater access to unlisted assets, which were historically aimed at institutional investors. What are the driving factors and issues at stake with this new trend? Four fund managers at Amundi Real Assets share their views. New and easier access to private markets We shall start by pointing out that in asset management, customers are divided into three categories: institutional investors, non-professional (or retail) investors and qualified investors. Qualified investors are non professional clients but can invest in professional funds. Their investment ticket generally exceeds €100,000. “The law tries to protect less expert investors so that they won’t invest in highly risky products”, explains Lelia Raynard, Managing Director at Amundi Transition Energétique, an Amundi subsidiary specialised in investments in green infrastructure. “In private equity and more specifically infrastructure deals, the financial structure can be fairly complex. The regulations govern this type of investment tightly, even though the risk profile in unlisted infrastructure is better than that of some other products available to retail investors*.” Over the past few years, these regulations have been changing and have made these markets easier to access. 2019 saw a first step forward with the PACTE law, which favours the growth of private equity by making new investment vehicles eligible for unit-linked life insurance policies. The aim is to give a large number of investors access to new types of funds so that their savings are directly oriented towards businesses. In other words, the PACTE law strengthens the contribution of life insurance in financing the real economy. “For example, some vehicles are no longer capped at 10% of the assets of a life insurance policy held by an individual and this encourages investment in unlisted assets”, says Claire Chabrier, Associate Director at Amundi Private Equity Funds. A closely supervised opening up of private markets? Nonetheless, asset managers must adhere to a number of regulations when marketing their financial products to retail investors. Asset management firms and each of the funds offered to non-qualified investors must have a special authorisation from the French regulatory authority AMF (3) and are open to a selected client base. The AMF(3) also sets communication standards for these funds, with a risk framework. From a regulatory point of view, these private equity funds (FCPR (4)) are subject to more constraints in terms of diversification than institutional funds. “Note that this strict framework is designed above all to protect investors and guide their savings towards assets that provide a welcome diversification”, points out Lelia Raynard*.
Timothée Jaulin Head of ESG Development and Advocacy at Amundi
Sandrine Lafon-Ceyral, Deputy Chief Investment Officer and Head of SRI Policy at Amundi Immobilier
Grégoire Destenay, Fund Manager and Managing Director at Amundi Transition Énergétique (ATE)
Clément Martin, Fund Manager and Managing Director at Amundi Transition Énergétique (ATE)
____________ Expected returns are not guaranteed and past performance is not indicative of future results. Investments are exposed to risks of loss of capital, liquidity and credit. The opinions expressed reflect Amundi's beliefs at the date of publication. und marketing collateral shall describe the risks and rewards of purchasing units orshares of a UCITS or an AIF in an equally prominent manner. Therefore, the risks and rewards / performance / advantages of a fund must be equally prominent in the marketing communication and displayed one after the other. This applies to all types of marketing material, including interviews as applicable. (1) French law on business growth and transformation. (2) Regulation governing European Long-Term Investment Funds (3) Autorité des Marchés Financiers (4) Fonds commun de placement à risque
_____________ (5) Source: : Note that the tax conditions and marketing constraints are still specific to each country.
Olivier Paquier, Head of Business Development and ESG, Amundi Real Assets
Sandrine Lafon-Ceyral, Chief Responsible Officer at Amundi Real Assets
Head of Social Impact investing at Amundi
Asset classes that perform over the long term Investing in private markets is a very tough job for retail investors. The main issue for investors is to take a long-term approach. “Turning to these assets is very relevant if the investment horizon is your retirement, for example,” says Lelia Raynard. “You have to accept that liquidity is not immediate”, adds Thierry Vallière. For Guy Lodewyckx, this type of returns has some advantages: “The investors benefit from what we call an illiquidity premium: a higher return is paid to compensate for the reduced liquidity of these long-term investments. We can call it outperformance compared with other asset classes.” The resilience of these assets can be found in infrastructure for example: “These investments are less volatile and offer a good risk/return profile,” says Lelia Raynard*. Thierry Vallière stresses that Private Debt offers recurring and foreseeable revenues with “an attractive risk/return profile”. Moreover, Private Debt assets benefit from floating rates, contrary to the great majority of traditional public bonds, and are partially protected against inflation risks. “All the advantages specific to Private Debt offset the lack of immediate liquidity,” concludes Thierry Vallière. Through a shift in the traditional allocation of investment portfolios in favour of private assets*, the market has good potential for growing by several hundred billion euros in Europe.” Responsible financing of the real economy The shift towards real assets by retail investors also mobilises sources of funding to support the real economy that is virtuous and of use to society. “In private markets, investors are very close to the business and the assets”, explains Guy Lodewyckx. “When fund managers invest in a company, they play a key role in the governance bodies and can drive significant change with regards to ESG, unlike investors in listed companies where the voting is more granular.” Real assets are widely represented in private markets, with the striking power of their social and environmental impact. The ESG dimension is increasingly emerging and a key factor in choosing an investment. The best-performing funds join portfolio diversification to a clear ESG strategy that ensures the sustainability of the assets. For Claire Chabrier, private equity is a means of activating this lever for a more sustainable real economy. With more than 7,600 start-ups, SMEs and mid-tier companies financed by private equity in France, these players support businesses to help them grow and transform themselves. “Today, faced with imperatives such as decarbonisation, French SMEs and mid-tier companies need help to achieve an efficient and sustainable transformation,” she says. “Investors such as Amundi Real Assets are able to place investment and social issues at the heart of their investment strategies. Retail investors have the possibility to invest, alongside institutional investors, in the private champions in industry and services that we are helping with these extra-financial aspects.” This move towards real assets by retail investors is likely to accelerate in the near future thanks to the draft law on green industry. This offers to include a mandatory percentage of unlisted assets in managed retirement savings. This mandatory percentage will be indicated in the management contract. “This will reduce the time lost by France in directing retirement savings towards the real economy, as only 0.1% of French savings are currently invested in unlisted assets”, says Claire Chabrier. “In the absence of pension funds, we should capitalise on our available resources to finance sustainable growth,” she concluded.
_____________
Private Assets: new investment horizons for retail investors
Florian Peudevin Impact Investing Fund Manager At Amundi Real Assets
Mathieu Azzouz Impact Investing Fund Manager At Amundi Real Assets
_____________ https://alchimistes.co https://www.ecodrop.net
____________ Expected returns are not guaranteed and past performance is not indicative of future results. Investments are exposed to risks of loss of capital, liquidity and credit. The opinions expressed reflect Amundi's beliefs at the date of publication. und marketing collateral shall describe the risks and rewards of purchasing units orshares of a UCITS or an AIF in an equally prominent manner. Therefore, the risks and rewards / performance / advantages of a fund must be equally prominent in the marketing communication and displayed one after the other. This applies to all types of marketing material, including interviews as applicable.
Claire Chabrier, Associate Director at Amundi Private Equity Funds
Guy Lodewyckx Head of Private Markets Multi-Management at Amundi Real Assets
Lelia Raynard, Managing Director at Amundi Transition Energétique
Thierry Vallière, Head of Private Debt at Amundi Real Assets
“Impact investing is a valuable driver of necessary transitions, as it adds non-financial targets to the mix, on top of the usual return-based targets”, confirms Mathieu Azzouz, an impact investing portfolio manager at Amundi. “As an impact investor, we offer products to individuals and investors that are aimed at financing the environmental transition, a process that we want to be as inclusive as possible. Since these types of solutions are often developed by microbusinesses and SMEs, we help them scale up their operations by providing financial and strategic advice.” “The way in which waste is managed today is a real environmental issue”, explains Alexandre Guilluy, co-founder and Chairman of Les Alchimistes, a social enterprise (‘entreprise solidaire d’utilité sociale’, or ESUS) that sorts, collects and recycles food waste. “We need to stop incinerating waste or dumping it in landfills, which undermines soil quality, is harmful to biodiversity and is contributing to climate change” he adds. Amundi has been partnering with Les Alchimistes since 2019. In the first round of fundraising, Amundi did not invest directly in equity but rather in the form of a loan without guarantee. “Beyond the purely financial aspect, Amundi is a stakeholder in our entrepreneurial adventure that helps us move faster and have a greater impact, through the alignment of our environmental, social and economic performance”, explains Alexandre Guilluy. After completing a large equity investment in the company, Amundi now sits on its strategic committee, where it is able to offer advice and help it forge ties with the ecosystem of other impact entrepreneurs. While the environmental transition is helped in France by a supportive regulatory framework (e.g. the AGEC law) and high customer and user expectations, the achievement of sustainable transition targets involves a lengthier process. A project earmarked for 2030 or 2035 requires ‘patient capital’. $7 trillion will need to be invested globally every year between now and 2030 in order to achieve the 17 United Nations Sustainable Development Goals. In France, €60 billion will be needed every year to make the switch to a circular economy. “There are very real investment opportunities, so long as the interests of project owners, financiers, savers and investors are aligned, with a view to achieving financial and non-financial targets when the time comes”, comments Mathieu Azzouz. “It is also worth emphasising that this circular transition could generate €1.8 trillion in net income between now and 2030 and create 700,000 new sustainable jobs that will not be at risk of relocation. The investments we make are helping to prepare a fair transition for everyone².” Investing in the creation of social and environmental value In practice, before we go ahead with an investment, we first conduct a comprehensive impact and ESG analysis, developed in-house. Together with information gathered from specialised outside consultants, this enables us to verify that the company is EU Taxonomy-eligible, to measure the tonnes of CO2 emissions that will be avoided (core investment thesis), to identify the social impact criteria that will make the transition inclusive, and to roll out an action plan to enhance the portfolio company’s own carbon footprint.
Financing transitions: harnessing capital over the long term In 2020, humanity set a new record by consuming more than 100 billion tonnes of natural resources to feed the global economy (housing, food, transport, consumer goods, etc.). This is 1.75 times the resources that the Earth can regenerate in a year. In order to produce these goods and services, humans use 7,450 billion cubic metres of water, which, in turn, leads to the release of more than 50 billion tonnes of CO2 into our atmosphere. Billions of tonnes of waste are also stored, scattered, incinerated or dumped in landfills1. Faced with climate change, society is being called upon to make necessary transitions in terms of energy, agriculture and food in order to limit the negative externalities. Massive investment is needed in these areas to allow for a fair and efficient transition. Finance can be harnessed to propel this transition in an inclusive way, by supporting the development of solutions and opening them up to as many people as possible. “Our world is in permanent transition”, says Florian Peudevin, an impact investing fund manager at Amundi. “Innovation follows revolution. In the past, society wanted to move away from all things local and switch to a global perspective, whereas nowadays the local angle has become a very strong focus again.” This momentum has led to the fast-paced development of a circular economy that is focused on reusing and recycling resources and materials. Companies who address these environmental and social issues are being encouraged to develop on a broader scale, publicise their actions and be even more impactful. “Unfortunately, while solutions have gotten off the ground in certain sectors, as seen with the broad roll-out of building insulation and the electrification of transport solutions, these measures are not widespread enough or available to all”, observes Florian Peudevin. The power of impact investing The Social Impact Investing team at Amundi Real Assets has invested nearly €80 million over the past ten years in around 20 businesses that are championing low-carbon solutions for the most polluting industries. In a world in which production-related human activity (transport, construction, industry, food, etc.) accounts for 80% of the pollution of our planet, the asset management company invests in costly sectors to accompany major transitions on a massive scale. “We need to have the means to develop an innovative solution”, explains Marie Combarieu, founder and Chair of Ecodrop, a French green-tech company founded in 2016 to combat the illegal dumping of construction site waste and promote the recycling of these materials (40 million tonnes of waste every year in France). “Ecodrop started off with industrial partners before receiving support from business angels. However, without the help of a partner like Amundi, we would not have been able to become viable so quickly while pushing ahead with a massive change of scale”. The financial logic behind impact investing funds hinges on a longer term strategy and is propelled by social and environmental indicators that go beyond a purely economic return-based focus”, says Marie Combarieu.
Lelia Raynard, F Director of Multi-Management for Amundi Real Assetsund Manager and Managing Director at Amundi Transition Energétique (ATE)
____________ (1) 1 Source : Circular gap report 2023
_____________ (2) Source: : Mc Kinsey report on circular economy for the European Commission, 2015
The idea is to align a sustainable method of production for the company with its end purpose of having a positive environmental impact. “We assess the quality and measurability of the company’s solution in order to come up with an impactful business plan centred on a fair and inclusive transition”, explains Mathieu Azzouz. “With a zero-carbon solution for example, every euro of revenue produced by the company must reflect a certain quantity of CO2 emissions that have been avoided. By applying this method, we are also able to set non-financial targets such as social impact criteria (job creation, accessibility, etc.), ESG practices of the highest standard and production methods with the lowest possible carbon intensity. All of this gives us the assurance that the companies we partner with are working to bring about a fair transition.” Les Alchimistes have set concrete targets to measure its environmental and social impact. “We are mindful to ensure that we employ a certain percentage of people who would otherwise have struggled to find a job, who represent 50% to 60% of our workforce of collectors-operatives”, says Alexandre Guilluy. “As the months go by, we take steps to improve their chances of finding further employment down the line, as we provide all our members of staff with an opportunity to complete in-house or external training during their time with us.” From an environmental point of view, Les Alchimistes measures the tonnes of food waste that it has saved from the incinerator or landfills, as well as the number of hectares of soil that could benefit from the compost it produces from this waste. At Ecodrop, at a time when major regulatory issues are at play, the aim is to pave a path towards managing construction site waste responsibly and sustainably. “Cooperating with partners who are just as committed as us to taking impactful action gives us confidence going forward”, says Marie Combarieu smiling. “A financial partner who is really in sync with our values, listens to what we have to say and helps us move forward in our working conditions and innovation, is worth its weight in gold!” “Our aim is to support businesses by helping them match their economic trajectory to their impact trajectory”, Florian Peudevin goes on, bearing in mind that environmental impact criteria are linked to social efficiency. “It is essential that we consider the creation of value for customers, employees and local communities. The idea is to provide a solution for the entire population, while creating sustainable jobs that are embedded in the ecosystem of each community, helping to revitalise local economic areas”, he concludes. https://alchimistes.co https://www.ecodrop.net
Using impact investing to rise to the challenge of financing transitions
people and the planet by pursuing five clearly defined objectives: ensure for as many people as possible access to decent housing, legal employment, appropriate healthcare and tailored training, in an environment protected in particular by the circular economy,” says Laurence Laplane-Rigal, Amundi’s director of social impact investing. The aim of the Simplon digital training institute network, meanwhile, is to deliver meaning profitably. Founded in 2013 and funded since then partly by the solidarity investment funds of Amundi and other leading finance players, this ESUS offers free courses in digital business to help the long-term unemployed find new, well-paid jobs. “We are a for-profit company whose main aim is to provide socially beneficial services in the areas of training and job market inclusivity. To enable us to implement our societal commitment unconflicted, we ensure that all of our investors have a background in the SSE or espouse ESG values,” says Simplon founder Frédéric Barbeau. The impact economy: a key environmental and societal building block Whereas ESG concerns non-financial analysis, impact is about intention. Having had its status as a user of best practice certified, this is where a company considers what it is contributing to the environment and society. And that impact is measurable. Not in relation to that of the company’s peers, but through the prism of concrete commitments and results. Impact is also the source of a specific measurement methodology involving the use of measurement ratios based on simple, common indicators such as the number of beneficiaries of each action. The Simplon digital training institute, for example, makes impact measurement a key part of what it does by defining detailed performance indicators from day one. Its trainees are profiled in detail before the course starts and then benefit from quarterly “check-ups” over the 24 months after it ends, involving qualitative and quantitative questionnaires. “We have trained 21,000 people since 2013, half of whom at or below final secondary education level. 45% of them are women, 20% refugees and 10% disabled. Inclusivity is a priority for us. Moreover, we have an excellent success rate, with 70% of trainees finding a job or resuming qualification-based study within six months of completing a Simplon course,” says Barbeau. Entrepreneurship as a creator of value for society and the environment Ten years ago, in 2012, Amundi created the Finance and Solidarity fund (2) , France’s largest social impact fund, with €480 million of assets under management (1) . “This portfolio allows us to support companies with a strong social and environmental impact. We firmly believe that the environmental transition and social impact are directly connected,” says Laurence Laplane-Rigal, who, in 2018, took the reigns of a business line created specifically for that purpose.
Impact investing is an effective tool for contributing positively to the environment and society. Laurence Laplane-Rigal, Head of Social Impact investing at Amundi, and Frédéric Bardeau, co-founder and chair of Simplon, a network of digital business training institutes for the long-term unemployed, share their conviction that finance should serve the social and solidarity economy. It is now a well established and universally accepted fact that doing business is more than about increasing turnover. Three letters – ESG (“environment”, “social” and “governance”) – stand for the non-financial analysis that is indispensable for weighing up all of a company’s intrinsic components. Some companies choose to go a step further by making social or environmental impact their main objective and so contributing fully to a just transition – in other words a more inclusive transition that combines positive social and environmental impact for the good of society as a whole. Such is the case with social and solidarity economy (SSE) companies in particular. Finance at the service of the social and solidarity economy Directing investment into SSE companies is the realisation of a long-term policy launched in 1959 by President de Gaulle, who devised profit-sharing to redistribute profits to company employees, promote collective savings and develop a tool for dialogue between workers and managements. Several decades later, in 2001, the first employee savings funds came into being. From 2008, companies that offered these employee savings mechanisms to their workers were obliged to include a socially inclusive fund in their employee investment offerings. This measure stipulated that 10% of socially inclusive fund savings be set aside for investment in social and solidarity economy ventures. It was an innovative and well received policy but one that failed to gain traction. It took 2014’s law inaugurating companies promoting inclusiveness and positive social impact (Entreprises Solidaires d’Utilité Sociale – ESUS) to link financial returns to the social and solidarity economy. Today, employee savings stand at some €150 billion in France, including €14 billion dedicated exclusively to solidarity-based investment (1) For Amundi, there are three key tenets to impact investing: intentionality (what you want to contribute to), additionality (the value you add) and impact measurement (indicators to assess your investment’s impact). “At Amundi we systematically measure the social and environmental impact of our investments. We seek to fund and support companies that work as directly as possible to “look after”.
____________ (1) Source: FAIR – inclusive and positive social impact finance study, 2022
_____________ (1) Source: Amundi, 14 December 2022 - (2) Reserved for professional clients
Amundi decided to position itself as a long-term investor to support initiatives ranging from programmes for access to housing, jobs, healthcare and education to measures to help seniors and promote the circular economy and responsible consumption. “We take the time to help the companies that we invest in and have developed an extensive investor base, with 70%(3) of fund investments coming from employee savings – representing nearly a million savers. In addition, some 26 Crédit Agricole Regional Banks – two out of every three – have invested in this fund,” explains Laplane-Rigal. One advantage of the dense networks that exist alongside the Regional Banks is that they make it easier for impact players to scale up their operations. Making social impact count territory-wide The projects that the fund supports are listed on the dedicated website Amundi.oneheart.fr, which anyone can visit for regular updates on the number of beneficiaries being helped by Amundi’s social impact investing. The Amundi Spot section gives fund investors access to information about the investments made in their location. There is also a “solidarity village” section for local authorities, to facilitate direct introductions between local and territorial stakeholders. “We also work to develop synergies between the portfolio’s investee companies, sharing a goal with them of not just doing good but doing things better together,” adds Laplane-Rigal. “In the coming months, we will be seeking to continue to act as the leader and driver of social impact investing by setting a target of €800 million in assets under management by 2025. We will diversify by launching funds for large corporates and institutions that require better yields at the same time as environmental impact – which we intend to link to social impact. This fund will subscribe to the transitional net zero 2050 target that all Amundi Real Assets business lines share. Amundi enjoys widely recognised social impact and environmental transition know-how: it is our job to progress towards a just transition, in other words a transition that combines environmental transition and social impact on a larger scale,” ends Laplane-Rigal.
_____________ (3) Source: Amundi Real Assets, 15 December 2022
Responsible investment, Amundi Real Assets’ DNA
Another step forward with the first Responsible Investor Report For Amundi Real Assets, investing responsibly goes far beyond merely complying with the regulations. “An ESG policy must have precise targets and commitments in which we want to progress and present concrete achievements to the investors and other stakeholders,” explains Olivier Paquier. In this respect, Amundi Real Assets took a major step forward in 2022 with the publication of its first responsible investment report. By stating and renewing its values and goals, Amundi Real Assets has, for the first time, formally set out its approach and made three commitments to all its stakeholders: - “Act for the climate” and offer at least one open-ended fund* with an investment objective geared towards the 2050 net zero transition for each area of expertise by 2025. - “Increase transparency”, essential for giving investors full confidence in Amundi Real Assets’ ability to achieve their ESG targets. - “Align the interests of all stakeholders and together build the necessary instruments for progressing in terms of sustainable investment”, a real requirement for the firm and its partners. A shared vision This first responsible investor report also provides the opportunity to state the ESG vision shared by all of Amundi Real Assets’ six areas of expertise. “The fight against climate change is so important that it cannot be conducted in isolation. It must bring together all possible responses and solutions around a concept that we believe in: a fair social and environmental transition,” explains Sandrine Lafon-Ceyral. “We must make sure to coordinate our action so that our goals and achievements are shared by and clear to all. We need a shared vision to be able to report on the impact generated,” says Olivier Paquier. Our main commitments for 2025 are therefore common to the different areas of expertise: putting in place an “Ambition Net Zero” strategy and introducing a roadmap or monitoring of ESG indicators for each portfolio holding. Lastly, this report “will be a yardstick for measuring the progress made each year,” concludes Dominique Carrel-Billiard, Head of Amundi Real Assets
To meet today’s unprecedented environmental and social challenges, responsible investment is an absolute priority for Amundi Real Assets. This priority is embodied in the shared vision of our six areas of expertise, with the integration of environmental, social and governance (ESG) criteria throughout the lifetime of the assets held and the goal of constant innovation in the financial solutions offered. The change of scale and intensity in the commitment to and consideration of ESG criteria is clear and irreversible. “The present period, first with the pandemic and then the war in Ukraine, is likely to be an accelerator for recognising the urgent need for an in-depth transformation in our economy and our society,” says Olivier Paquier, Head of Business Development and ESG at Amundi Real Assets. Responsible investing therefore seems increasingly vital and is a challenge that must be met by asset managers. “The growing awareness of both our institutional and retail investors of the necessary environmental and social transition heightens their expectations with regard to a business like ours and encourages us to be as clear, informative and transparent as possible concerning the assets that we hold,” adds Sandrine Lafon-Ceyral, Head of Responsible Investment at Amundi Real Assets. Ten years of responsible investment Amundi Real Assets has a solid track record in this area having integrated ESG criteria in addition to its financial analysis for the past ten years. Amundi Real Estate was the first of Amundi Real Assets’ areas of expertise to take the lead in this area when it drew up a responsible investment charter in 2012, “which was a first among asset management firms at the time,” points out Sandrine Lafon-Ceyral. 2012 also featured the launch of a social impact investment strategy in France that is now, ten years later, the largest strategy of its kind in France with more than €450 million of assets under management. The strategy funds 48 social and solidarity businesses, working in particular in favour of access to housing, jobs and environmental conservation. Integrating and innovating These two important moves perfectly illustrate Amundi Real Assets’ pioneering approach as a responsible investor, combining innovation and exemplary integration of ESG criteria in its investment processes. Since then, all of Amundi Real Assets’ areas of expertise have also drawn up ESG charters formally stating their commitments. Control of the responsible nature and ESG aspects of investments has been tightened, in particular by the veto powers granted to ESG analysts in the Amundi Private Equity Funds and Private Debt teams. The Multimanagement team ensures the proper practices the asset managers that they partner with, through a stringent ESG selection process and by including strict clauses in the partner agreements. In addition, Amundi Real Assets widened its scope in 2016 when it created Amundi Transition Énergétique. This asset management firm is the fruit of a new type of partnership as it is jointly owned by Amundi and an industrial partner. It invests in diversified energy transition assets, including renewable energy production infrastructure and energy supply and efficiency infrastructure.
*: An open-ended fund is an investment fund whose capital can be invested in (subscription to units or shares) at any time during its existence. Legal disclaimer: The expected returns are not guaranteed and past performance is no guarantee of future results. Investments are subject to capital loss, liquidity and credit risks.
____________ (1) It is important to keep in mind the risks associated with this type of asset, such as liquidity risk, risk of capital loss or the fact that there is no guaranteed income.
_____________ (2) Source: Amundi, April 2022
Read the Responsible Investor Report
Having the greatest possible impact on the energy transition We have known for a number of years that the needs tied to the energy transition are vast, bearing in mind the net zero emissions target set for 2050. “The Russia-Ukraine crisis has amplified these needs, demonstrating the full importance of energy sovereignty and hence the development of renewable energies”, says Guy Lodewyckx. The development of wind or solar farm projects requires hefty amounts of capital and, given the issues mentioned earlier, “we can expect to see governments implementing policies that encourage the inflow of private equity into infrastructure programmes”, he predicts. Opportunities… and requirements The Amundi Real Assets Multi-Management team can draw on its experience and its size to tap into fast-growing private markets. Founded in 1998, this is one of the oldest multi-management operations in Europe², boasting a 20-year track record with over 900 investments made. It currently has investments in more than 600 funds, with in excess of €10 billion under management**. This large size puts the Multi-Management team at a considerable advantage: “by definition, information is not publicly available in private markets and is not spread around; a deep network is therefore needed to uncover the right deals. Our size sets us apart: it is easier for us to find information and therefore opportunities, because when managers raise a fund, they know they can rely on our team to bring in large sums. Size enables a wider deployment capacity that we use to offer our investors more diversified opportunities”, concludes Guy Lodewyckx.
Public health crisis, global warming, Russia-Ukraine conflict… There are many uncertainties weighing on the global economy. Multi-management is a way to raise large sums and target strong returns, while diversifying exposure to all manner of risks. Multi-management provides opportunities to invest in different asset classes, through several funds, with various management companies. It is quite an appealing solution for institutional clients looking for a simple way to invest large sums and diversify their investments as much as possible. It is also beginning to become popular with retail investors. Clients can choose how much they want to invest, their desired investment period, the type of assets they want to invest in, and the economic and geographical sectors they want to target. “Once these criteria have been set, we will determine what funds fit the bill according to several priorities: managers with tried-and-tested investment processes, stable teams and solid returns. We also place a strong focus on the inclusion of ESG criteria”, explains Guy Lodewyckx, Head of Private Markets Multi-Management at Amundi Real Assets. “We want the portfolio as a whole to be balanced and to achieve the objective set by the client”, he adds. “The ESG analysis of management companies is decisive. This has been a priority for us since 2014, and we have developed a very precise selection process, in which reporting plays a major role. To invest with a manager, we must have complete confidence in their ability to apply the most appropriate ESG practices in their investment decisions", underlines Guy Lodewyckx. Diversifying exposure “Private markets and real assets are more and more appealing to institutional investors, and multi-management meets their extensive needs”, outlines Guy Lodewyckx. They are a very good match for this type of investor profile, for a number of reasons. “These investors are looking for very long investment horizons and have the means to redirect their investments towards less liquid assets to potentially derive a return over time”, he adds. Making a shift over to unlisted assets, combined with multi-management, is a way to further diversify exposure. This is especially pertinent at times like these. Diversifying exposure to markets makes particular sense in times of great uncertainty, be they tied to public health or geopolitical risks. Real assets proved resilient during the Covid crisis, delivering good returns and registering sustained growth in inflows¹.
Legal information: This document is not intended to be used by residents or citizens of the United States of America or by “U.S. Persons”, as that expression is defined by “Regulation S” of the Securities and Exchange Commission by virtue of the U.S. Securities Act of 1933. The definition of “U.S. Person” is provided in the legal notices on the www.amundi.com website. Promotional, non-contractual information that does not constitute investment advice, an investment recommendation or a solicitation to buy or sell financial instruments or financial services. Amundi assumes no liability, either direct or indirect, resulting from the information contained in this document. Amundi cannot be held liable for any decisions taken on the basis of any information contained in this document. This non-contractual document is based on sources which we consider to be reliable. Investing involves risks. The value of an investment in the products and the income from them can go up as well as down. The products mentioned do not guarantee capital or performance. As a result, investors may lose all or part of the capital originally invested. It is the responsibility of investors to assure themselves as to the compatibility of this investment with the laws of the jurisdiction to which they are subject and of its appropriateness to their investment objectives and financial (including tax) situation.
In addition, technological advances enable electricity production costs to be drastically reduced through economies of scale. “In recent years, wind-power technology has progressed considerably and new wind turbines are much more powerful. In addition, large offshore wind farms are under construction and floating wind farms are under development. Both technologies are particularly useful because they enable the capture of wind that is less intermittent and more predictable than on land,” explains Lelia Raynard. Developing these green energies requires significant capital. Therefore, the financial sector, and primarily investors, have an important role to play. "Current wind turbines, for instance, are long-term projects because they last for around 30 years. This corresponds to investment maturities in line with the strategy pursued by ATE and its investors who look for uncorrelated returns over long periods of time,” outlines Lelia Raynard. “Energy transition assets are very capital-intensive, operating costs are quite limited. Unlike a gas or coal power plant, the raw material is free,” adds Grégoire Destenay. Opale Energies Naturelles, the ideal partner to expand in the wind power sector The partnership between ATE and Opale Energies Naturelles, signed in early 2021, perfectly meets the challenges mentioned above. “We met with the Directors of Opale Energies Naturelles in 2019. We quickly developed a strong relationship and were able to build a mutually beneficial development strategy. This partnership enabled Opale Energies Naturelles to remain independent as a developer, and Amundi Transition Energétique to invest on behalf of its investors in high-quality, long-term assets,” says Lelia Raynard. The Opale Vesontio platform, which resulted from this agreement, has enabled the construction of a wind farm called MVI, financed in partnership with Crédit Agricole Franche-Comté and BPIfrance. Construction of a second farm called BDS, began in late 2021 and is expected to be completed by year end. “By the end of 2022, both will be operational and will generate enough electricity to provide energy to 27,000 people,” adds Lelia Raynard. ATE aims to sign a significant number of similar partnership agreements and thereby seize the opportunities from the energy transition. “We are present in France, Belgium, Spain, Italy and Sweden, and want to expand into other European countries. In terms of technologies, our funds will also expand in biogas, electric transport, storage, hydrogen, just to name a few” concludes Lelia Raynard.
What measures should be taken to limit global warming? The steps that need to be taken are huge and essential. Developing renewable energy infrastructure is one of them and is a top priority. Although there is good momentum in this area, more needs to be done. The share of renewable energy consumption in France increased from 9% in 2005 to 19% in 2020. “However, we are still below the target of 23% for that year, ” outlines Lelia Raynard, Fund Manager and Managing Director at Amundi Transition Energétique (ATE). Moreover, in order to meet climate requirements, “We are currently switching to using electricity for a great number of purposes, and electricity consumption is likely to increase significantly in the coming years,” says Clément Martin, Fund Manager and Managing Director (ATE). As a consequence of these increasing needs, a more balanced energy mix is required within which the various renewable energies including wind, solar, biomass among others, must all play greater roles. The challenge of acceptability The development of renewable energies, and wind turbines in particular, is facing a major challenge in France: acceptance. “While the need for electricity production tools and for carbon-free production are obvious, local residents often object to the development of renewable energy projects,” highlights Lelia Raynard. As a result, while the construction itself of solar or wind projects takes 12 to 18 months, completing them takes 7 years on average due to procedural delays. “Yet, the French context lends itself quite well to the development of renewable energies, on an economic and political level,” adds Clément Martin. While public and private stakeholders often firmly believe in the merits of developing them, they struggle to convey this message. “Better communication regarding these energies is essential,” says Grégoire Destenay, Fund Manager and Managing Director at ATE. Projects that require significant investments Another major challenge for the development of renewable energy projects is their manufacturing costs. Wind and solar farms require a very large initial investment, though the same can also be said of other forms of electricity production. _____________ *Target set following the application of a 2009 European Directive
Lelia Raynard, Fund Manager and Managing Director at Amundi Transition Energétique (ATE)
The development of these innovative techniques and, most importantly, their incorporation into the buildings, requires significant investments. It is here that the financial sector becomes a vital link in the ecological transition of the real estate sector. “By investing directly in virtuous assets or in assets that they undertake to make more virtuous, asset managers have a key role to play in terms of energy and ecological transition. At Amundi, we have been on this journey for many years and were present alongside UNEP FI in 2014 in co-founding the Portfolio Decarbonization Coalition. Our aim is to gradually increase the value of virtuous and responsible assets under management, while continuing to develop energy transition solutions,” says Timothée Jaulin. Net Zero as a compass The Net Zero Asset Managers Initiative, which Amundi joined in July 2021, is another important step in the mobilisation of the financial sector. Its objective is to encourage large asset management companies to bring their managed assets in line with carbon neutrality objectives. “This involves working on all assets under management but also setting stricter goals for some of the assets. We want to soon be able to develop strategies compatible with the most ambitious version of the Paris Agreements across all our investment platforms”, Timothée Jaulin argues. Asset managers are committed to facilitating investments in portfolios aligned with carbon neutrality targets and solutions that support climate change goals. In its environmental ambitions, the financial sector will be helped by new regulations in this area. For example, since October 2020, real estate funds have been eligible for government SRI certification. “This accreditation, which is now managed by Europlace and Finance For Tomorrow, gives investors a clear and comprehensive view of their investment, based on a series of standardised criteria,” explains Sandrine Lafon-Ceyral. It also ensures transparency and quality of information for investors. Investors can and should influence the behaviour of companies. As shareholders, they have significant leverage and are not simply observers. Therefore, their strong support will be needed in order to finance the ecological transition of the real estate sector, which is itself critical if we are to achieve carbon neutral targets by 2050.
Reducing emissions in the real estate sector is a priority, without which the ambitious target of net zero by 2050 will be difficult to achieve. The financial sector as a whole has a key role to play in raising the resources needed to achieve this transition to carbon neutrality. In a report published in January 2021, UNEP (United Nations Environmental Programme) expressed alarm at the unprecedented level of global C02 emissions emanating from the building sector. The figures speak for themselves: nearly 10 billion tonnes in 2019, or 25% of total volumes. In France, the real estate industry is the second biggest emitter of greenhouse gases, after the transportation sector, producing 45% of national emissions. The need to renovate a very energy-intensive real estate portfolio “The major issue in France concerns existing buildings, and in particular those built in the 70s and 80s, which include an enormous number of badly insulated properties,” notes Sandrine Lafon-Ceyral, Deputy Chief Investment Officer and Head of SRI Policy at AmundiReal Estate. “Real estate is actually a major lever for the decarbonisation of the French economy,” agrees Timothée Jaulin, Head of ESG Development & Advocacy for Amundi. Some countries understood very early on the importance of what is a very daunting task. This includes Sweden, where the majority of the properties are connected to an urban heating network, which is itself supplied in large part by biofuels or heat discharged by waste incineration or other industries. Thanks to this system, Sweden has been able to reduce its emissions from heating and hot water production by 90% in 30 years. The reason the challenge relates mainly to existing properties is also because new buildings are now built efficiently, with environmental protection as a priority. “The developers have taken up the issue; they are working on both materials and the waste management of their sites. There is a real awareness,” says Sandrine Lafon-Ceyral. Technical advances for cleaner construction The technology currently being developed in the building sector is leading to better control of energy expenditure, from the construction of the building to its use by inhabitants. “Innovative buildings are emerging, such as those with wooden frames that therefore require less concrete, or others with technical facilities that help create an energy-plus building, such as natural air conditioning or geothermal energy,” explains Amundi Real Estate’s Deputy Chief Investment Officer. These technologies can also be replicated in renovations of older buildings.
Le Net Zero comme boussole La Net Zero Asset Managers Initiative, rejointe par Amundi en juillet 2021, est une étape supplémentaire et importante de la mobilisation du secteur financier. Son objectif est d’inciter les grandes sociétés de gestion à aligner leurs actifs gérés vers les objectifs de neutralité carbone. « Cela implique de travailler l’ensemble des actifs sous gestion mais aussi de se fixer des objectifs plus contraignants sur une partie des actifs. Nous souhaitons être bientôt en capacité de développer des stratégies compatibles avec les Accords de Paris, dans leur version la plus ambitieuse sur l'ensemble de nos plateformes d’investissement », avance Timothée Jaulin. Les gestionnaires d’actifs s'engagent ainsi à faciliter les investissements vers des portefeuilles alignés avec les objectifs de neutralité carbone et vers des solutions contribuant aux objectifs de lutte contre les changements climatiques. Dans ses ambitions environnementales, le secteur financier sera aidé par les nouveautés réglementaires en la matière. Depuis octobre 2020, les fonds immobiliers sont ainsi éligibles au label d'État ISR. « Désormais piloté par Europlace et Finance For Tomorrow, ce label permet de donner aux investisseurs une vision claire et exhaustive de leur investissement, sur une série de critères normalisés », précise Sandrine Lafon-Ceyral. Il est également un gage de transparence et de qualité de l’information pour les investisseurs. Les investisseurs peuvent et doivent influencer le comportement des entreprises. En tant qu'actionnaires, ils disposent d'un levier important et ne sont pas de simples observateurs. Ainsi, ils devront être fortement mobilisés pour financer la transition écologique du secteur immobilier, elle-même décisive pour la réalisation des objectifs de neutralité carbone d’ici 2050.
Immobilier
Olivier Tavernier
Président-directeur général de Constructa Asset Management
"Nous avons accéléré la création d’emplois et favorisé la réinsertion professionnelle..."
En savoir
Investissement a impact social
Laurent Laïk
Président du groupe La Varappe
"La Varappe a pour vocation à faciliter l'insertion des personnes éloignées de l'emploi à travers des métiers autour de l'environnement...."
Capital Investissement
Nicolas Lehericey
Directeur Qualité-Sécurité-Environnement (QSE) chez Chereau
"Nous avons écrit 4 grandes convictions, qui se sont traduites par 16 engagements..."
Dette privée
Xavier Sejourné
Directeur administratif et financier du groupe Jacky Perrenot
"Nous faisons partie des premiers acteurs à avoir mis en place les porteurs 26T 100 % électrique en France....."
dette privée
Loïc Couilloud
Président-directeur général de Routin
"Chez Routin, ce sont 60 collaborateurs qui sont en charge d'opérations intégrant en leur coeur les critères ESG..."
multigestion
Alexander Bjørklund
ESG Manager chez Summa Equity
"Nous avons adopté pour des Objectifs de développement durable des Nations unies, ... comme une boussole pour chacun de nos investissements."
infrastructures vertes
Jonas Dahlström
Chief Executive Officer chez Slitevind
"Notre objectif à court terme est de doubler notre production d'électricité, afin d'économiser un demi-million de tonnes de CO2..."
3
questions à ...
Faced with the growing needs of retail investors, Amundi Real Assets has identified three main elements sought by investors:
get higher returns
There are attractive investment opportunities in European private markets.(1)
1
diversify their portfolio
In a constantly changing economic environment, it is essential to diversify assets with the aim to mitigate the risks. Amundi Real Assets’ solutions enable retail investors to diversify their assets by entering European private markets, thereby offering protection against inflation and improving the resilience of their portfolio.(1)
2
Invest with a positive impact
Investors are increasingly paying attention to the social and environmental impact of their investments. Amundi is committed to supporting the green transition and real economy by offering responsible investment in innovative and sustainable projects.(2)
Through its platform of solutions, Amundi Real Assets offers its retail investors the possibility to seize opportunities in European private markets. Amundi, one of Europe's leading asset management companies, provides solutions for retail investors that wish to explore European private markets. The solutions provided by Amundi Real Assets offer investors the opportunity for potentially higher returns and diversification of their portfolios while contributing to the real economy and green transition at the same time.(1)
Tailored ELTIF funds
Amundi’s ELTIF (European Long-Term Investment Fund) funds are specifically designed to meet retail investors’ needs. They offer exclusive strategies focusing on European private markets, enabling retail investors to invest in assets usually reserved for institutional investors and benefit from potentially attractive returns over the long term.(1)
Easy subscription
Amundi wants to simplify the access to European private markets as much as possible for retail investors. Its platform therefore facilitates subscriptions, offering investors a smooth and clear experience. Moreover, Amundi plans to apply the new ELTIF 2.0 regulation which sets the minimum investment ticket at €1,000.
To meet these needs, Amundi Real Assets offers a range of solutions adapted to retail investors
(1) Expected returns are not guaranteed and past performance is not indicative of future results. Investments are exposed to risks of loss of capital, liquidity and credit. The opinions expressed reflect Amundi's beliefs at the date of publication. (2) Please refer to Amundi's Responsible Investment Policy and Amundi's Sustainable Finance Disclosure Statement available at www.amundi.com
Roof gardens, patios & wintergardens, façades will be planted to promote and protect biodiversity
90 parking spaces, bicycle parking with showers Rain water collected for irrigation
Geothermal system Operating by taking the energy contained in the ground and using it to heat/cool buildings.
Solar panels on the roofs, solar panels on the facades : ON MAX: the panels cover an area of 1,562 sqm and are capable of producing 163,200 kWh annually, or about 40% of the on-site energy requirement. ON MOORE: the panels cover 762 sqm of surface area and are capable of producing 78,613 kWh annually.
Here is some characteristics of the buildings in favor of the environment:
And to go further, if you want to experience a real immersive walk inside and outside the buildings,…. (we recommend you to disconnect your vpn for a better experience)
https://www.lmbaerospace.com/
Max & Moore was acquired prior to the search for a tenant. This acquisition reflects part of an ELTIF fund, which is to take a risk, potentially resulting in a capital gain when the asset is leased (but with no guarantee). They are located in the heart of Buiksloterham, in an old brownfield and port area, in the northern area of Amsterdam city. The area has become extremely popular recently and is looking to become an environmentally friendly, sustainable and technological village. Many companies have already moved to it. They are certified BREEAM Excellent upon completion of its construction. This certification values buildings that protect and respect the environment from their design stage to the end of the building's life.
Max & Moore are two office buildings wich should be delivered on May 2022, are connected by a bridge, cover a total surface area of 9,800 sqm. The Max building offers a surface area of 7,015 sqm and the Moore building 2,785 sqm. An “ELTIF” building has to meet several criteria. This is exactly why we choose the Max&Moore buildings : for its Smart and Sustainable aspects.
REAL ESTATE
Chairman and Chief Executive Offer of Constructa Asset Management
"we accelerated job creation and promoted reintegration into the workplace ..."
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SOCIAL IMPACT INVESTMENT
Laurent Laik
Chairman of La Varappe group
"La Varappe aims to facilitate the integration of the long-term unemployed through environmental jobs ..."
PRIVATE EQUITY
Head of Quality, Safety and Environment (QSE) at Chereau
"We established four major convictions and translated them into 16 commitments..."
PRIVATE DEBT
Chief Financial Offer of the Jacky Perrenot group
"We were one of the firt companies to introduce 100% electric 26-tonne trucks in France..."
PRIVATE dEBT
Chairman and CEO of Routin
"60 operational staff in all, tasked with including ESG criteria in the company's core policies ..."
MULTIMANAGEMENT
ESG Manager at Summa Equity
"We adopt the UN Sustainable Development Goals as a touchstone for each of our investments."
GREEN INFRASTRUTURE
Chief Executive Officer at Slitevind
"Our short-term goal is to double our electricityproduction in order to save half a million tonnes of CO2..."
questions to ...
Enhance the local area’s attractiveness by building an eco-friendly space with double certification.
Contribute to social cohesion and connection;
Help improve health through nutrition awareness initiatives;
Help improve the employability of local residents;
Sodexo’s Passerelle initiative seeks to generate a positive impact through several commitments:
The last few years have seen a large number of “third place” projects emerge in France. ANRU and Amundi have joined forces to encourage such schemes to set up in disadvantaged neighbourhoods, and have invested together in la Passerelle, a third place designed and built by Sodexo. La Passerelle third places are set up in the heart of urban disadvantaged areas to serve residents’ needs at source and cater for local hiring requirements, particularly those of the Sodexo group, 25% of whose employees live in these areas.
" … La Passerelle is the Sodexo group’s latest emblematic social engagement project. Its specific objectives are to channel people excluded from long-term employment into stable jobs and to help develop community food networks sourcing from farms in the local region. It is fully aligned with the investment ethos of Amundi Real Assets division’s social impact investing business line and the Crédit Agricole group’s societal project." Laurence Laplane-Rigal, Head of social impact investing, Amundi
The European Investment Fund invests €30m in Amundi’s senior impact debt strategy for Small and Medium-sized companies
The EIF’s commitment validates three very important features of Amundi’s senior impact debt strategy:
And last but not least, the third feature of this fund is its impact theme, which aims to accelerate the decarbonisation of the economy.
The second feature is Amundi’s determination to invest in French and European companies in order to contribute to the strengthening of the European non-listed market and to become a major player in European private markets;
The first is to direct funds towards medium-sized companies that do not have access to the bond market but need bullet debt to finance their growth;
“We have a simple premise: all companies wishing to benefit from an investment by this fund must commit to a full carbon assessment and an action plan to reduce their emissions.” Valérie Baudson CEO of Amundi
Valérie Baudson, CEO of Amundi, and Marjut Falkstedt, CEO of European Investment Fund (EIF) have signed a €30m investment in Amundi’s impact private debt strategy dedicated to professional investors and the financing of European mid-caps. Amundi is thus participating, alongside the public authorities and regulators, in the effort to achieve a just transition and, in a very concrete way, transforming the economy. In the framework of the InvestEU programme launched by the European Commission and the EIB Group, the European Investment Fund has made a €30m subscription in Amundi’s fourth impact senior debt strategy, which aims to support SMEs in their climate action and environmental sustainability investments. This strategy dedicated to professional investors has an explicit focus on sustainable development, with a defined objective of climate action and environmental sustainability.
This is a very concrete demonstration of the leverage effect provided by the InvestEU programme, like the Junker plan. It will contribute to reducing the backwardness of small and medium-sized companies in this field and to the faster achievement of the objective set by the Corporate Sustainability Reporting Directive (CSRD) to extend the obligation to publish a carbon footprint to unlisted companies with more than 250 employees by 2026.
Given the EIF’s reputation for high standards and selectivity, this investment will allow Amundi to:
win over many other Institutional investors and increase the mobilisation of savings in favour of these common objectives
‘La Passerelle’, a third place with social impact
7 testimonials of ESG Commitment
Zoom sur
Ecodrop’s environmental protection approach is one of the key themes supported by the Amundi Finance & Solidarité fund. Nearly 275,000 tonnes of waste have been recycled since the creation of the fund ten years ago.
Ecodrop was founded in 2017 and is a waste logistics operator for construction sites. The digital platform provides a site waste management and disposal service for builders and private individuals. It uses logistical, practical, economical and sustainable solutions. This service helps develop the re-use of building materials and reduces the need for the large operators who use the platform, to dump their construction waste in landfills or incinerate it.
recovery of construction waste
education and economic development in a priority area
L’Epopée helps provide access to education and training, two key themes supported by the fund. More than 75,000 people have received training since the fund was created in 2012.
Support for ‘third places’ – which was initiated in 2017 with Etic, then consolidated in Bordeaux with Darwin Evolution in 2020 - is gathering momentum in Marseille this year through an initiative launched by L’Epopée community, led by Synergie Family and other players in the
social and solidarity economy (SSE). The new site, spanning more than 15,000 sq.m., located in a priority neighbourhood to the north of Marseille in the former headquarters of the Pernod Ricard group, will house educational and inclusive innovation initiatives. L’Epopée disrupts traditional educational formats and harnesses the interlocking relationships between stakeholders, together with local integration, to address employability and poverty challenges in disadvantaged neighbourhoods.
"Le village Solidaire"
With €440 million in assets under management at the end of December 2021 and close to 50 social businesses funded, The Amundi Finance & Solidarité fund, created in 2012 and managed by the Amundi Impact Investing team, remains the leading (2021 Finansol ranking) social impact fund in France. This represents a good opportunity to present some of the new investments carried out by the team in 2021 and take a closer look at the companies which make people, the environment and social progress a core element of their strategy.
Ecodrop and the "Epopée", 2 initiatives that work for the common good and generate a positive impact
Spotlight On
Take a look at our website https://amundi.oneheart.fr to find out more about the companies that we partner with, and to keep up with their news all year round. The companies in our portfolio form a virtual village on the website to illustrate regeneration, facilitation and inclusion avenues.
The FoodCub, Marseille’s leading food incubator
The FoodCub is the brainchild of five complementary players. It was initiated by AmundiReal Estate , the lessor of the Docks, with management provided by Constructa Asset Management, a real estate management company. To carry out this great project, they have brought together several entities alongside them: the “Le Carburateur” incubator, the École Hôtelière de Provence (an hospitality management school) and the Apprentis d’Auteuil foundation. Each partner provides future talent with the right conditions for sound training combining theoretical and practical knowledge. This food incubator is a response to a harsh fact: 80% of chef-led catering start-ups have a lifespan of less than five years. And more than 25% of young graduates in the sector, with Baccalaureate or CAP vocational qualifications, are still unemployed four years after receiving their diploma. The aim is thus to support catering start-uppers as well as their apprentices in order to help them establish themselves for the long-term in their activity. Through this type of initiative, Amundi Real Estate hopes to create unique experiences and aims to enhance the appeal of shopping centres.
This hybrid project, combining fooding and corporate social responsibility (CSR), opened in September this year in the Docks Marseille, at the heart of the city. FoodCub is promoted by Amundi Real Estate and aims to support and push forward ambitious projects developed by chefs and their apprentices. The Docks are being reinvented. 400 m2, with a large facade facing the sea and two terraces (one inside and one outside), production and sales areas, as well as seven innovative food concept corners, have now been turned over to chefs and apprentices offering new culinary concepts.
First Food Incubator
In France
Amundi Private Equity Funds (PEF) is making a significant move by participating in the acquisition of the majority of the capital of Jems, a Big Data expert. This strategic investment is made in collaboration with Meanings Capital Partners and Africinvest, marking a major milestone in the growth of Jems, which aims to become the European leader in Big Data.
Amundi PEF is committed to supporting Jems' organic growth and accompanying it in its acquisition expansion strategy, both in France and internationally. With several acquisitions planned by 2027, Amundi PEF is excited to contribute to positioning Jems as a leader in terms of Green IT and responsible digital technology. This investment demonstrates Amundi PEF's ongoing commitment to supporting innovative and promising companies with strong growth potential.
745 employees
Turnover 2022
74 million euros
The company is well established in several international markets, including in: France, Switzerland, Belgium, Spain, Romania, Morocco, and Tunisia.
Source : MEANINGS CAPITAL PARTNERS – 21/06/2023
Amundi Private Debt has committed, alongside BNP Paribas, €70m as part of a Green Mortgage Loan to finance the refurbishment (demolition and reconstruction) of an office building in Lyon.
Office building
30,000 sqm of office and ground floor retail space
La Part-Dieu business district of Lyon
Amundi Private Debt finances the refurbishment of a building in lyon
Le Deal
The objective is to bring a property onto the rental market that meets the latest standards in terms of:
Fexibility of use: flex office format, integrated services including fitness, auditorium, catering, pharmacy, co-working spaces, post office down the building etc
Centrality and environmental quality
And energy efficiency: the aim is to secure ‘Excellent’ BREEAM and HQE environmental certification ratings, together with Well and WiredScore ‘Gold’ ratings.
This project should benefit from the greater polarisation of the market, with a premium for assets that are built to the best standards and carry the most recognised certifications. This Green Loan has been allocated to two funds under management exclusively for professional investors. Our new private debt strategy exclusively for professional investors is in the launch phase and targets €600m in subscriptions.It benefits from a €150m ticket from an anchor investor’. Although past performance is not indicative of future performance, it will be able to draw on the convincing performance of the first vintage, which was buoyed by a resilient and liquid diversified portfolio during the public health crisis, a portfolio that is delivering a return in excess of the initial objective. Alike all investments, this investment is subject to risks of capital loss, liquidity and credit. This new vintage is targeting a gross return above 5%* for an investment-grade risk type. Performance data are gross and do not take into account all fees, commissions and charges attached to the fund. There is no guarantee that this objective will be achieved. *in the current market environment
LMB Aerospace, located in Brive-La-Gaillarde in France and founded more than 60 years ago, is a specialist of high-performance thermal management solutions for applications dedicated to the aerospace and defence industries.
Watch the video to find out more from Thomas Bernard, Director of LMB Fans & Motors, and Christophe Somaini, Partner at Amundi PEF, interviewed by Bruno Ducastel, Deputy Head of Product Sales Specialist at Amundi Real Assets.
For more information, visit the LMB website
‘Eau de Verveine’ : a bridge between health and well-being
At work
Financing and supporting the growth and development of companies with a particular focus on ESG Amundi’s Senior Private Corporate Debt team are one of the three areas of expertise of Amundi’s European Private Debt platform, along with mortgage debt and leveraged loans. Ever since the platform was created in 2012, more than 250 transactions have been completed, representing total investments of €9bn*. Amundi’s Senior Private Corporate Debt team are experts in their field and manage assets of almost €4.5bn*. The team is made up of 13 professionals* with varied and complementary profiles, each with 15 years of expertise on average. 2021 was a particularly busy year for the Senior Private Corporate Debt team with around 30 transactions completed with a total investment of €407m and the launch of the team's first Senior Corporate Debt Impact Strategy in the second quarter, which has enjoyed considerable success so far*. Amundi’s Senior Private Corporate Debt team have been supporting Vivonio in its development since February 2022. Based in Munich, Vivonio is a major player in the European furniture market. The group designs furniture before manufacturing it in its highly automated factories. The group has recognised expertise in the market and is therefore trusted by customers. Why has the team chosen to support Vivonio? Vivonio operates in a dynamic furniture sector and is a major supplier to the market leader (Ikea), which has set itself eco-friendly objectives and is seeking to eliminate plastics by 2028 and targeting a fully circular supply chain by 2030. The Vivonio group also follows good ESG practices that are broadly supported by customers, who request Environmental & Social criteria. Finally, the involvement of the Senior Private Corporate Debt team requires the company to reinforce the incorporation of ESG criteria in its processes by carrying out a carbon assessment with objectives and policies focused on reducing CO2 emissions. *Source: Amundi, 31 March 2022
In a neighbourhood undergoing a complete transformation, professionals from conventional medicine and alternative approaches are mobilising their skills in the service of health in the broadest sense, for a multidisciplinary vision of the patient and his well-being.
Less conventional health building
680 m2
13 cours Gambetta - 34 000 Montpellier
Amundi Private Equity FUNDS gives the floor to Directors of SMEs that we support
LATEST PUBLICATIONS
Amundi Immobilier is supporting its new tenant in its development by offering high-quality and innovative spaces geared towards new forms of use. These living spaces will be connected, lively, adjustable, spacious, comfortable and user-friendly, and will offer innovative technological infrastructure. Architectural redesigns, such as the conversion of the roof terraces to green rooftops, will enliven these numerous spaces dedicated to partnerships, creativity, the sharing of ideas and entrepreneurship. La Défense: appeal of the largest business district in Europe and economic dynamism By choosing to move into Cœur Défense, this campus, our new tenant, is providing students with the opportunity to study in and experience a unique environment that is conducive to interactions between students and businesses. Cœur Défense is a building owned by a number of investment vehicles offered by Amundi Immobilier. The building is the epicentre of the dynamism of Paris-La Défense with an access to “La Dalle” (paved esplanade), with a floor area of 160,000m2 and 28 tenants. The Paris-La Défense neighbourhood, the leading European business district that is undergoing constant change, is enhancing its appeal and is continuing to increase its services offering. With the 2024 Olympic Games on the horizon, its revival has seen a definitive shift towards mixed use buildings, appealing to all businesses in the area. La Défense is seeing the arrival of more restaurants, including those with Michelin stars and is developing its leisure, hotel, sports and services infrastructure, while its spaces are becoming greener.
The OMNES Education group, a new Cœur Défense tenant, will be welcoming 3,500 students in September 2022. The OMNES Éducation group, the leading private higher education provider in France with 12 schools and 30,000 students, will fully benefit from the building’s modernisation. The campus will occupy all 13,500m2 of floor space and will welcome 3,500 students at the three schools on the site: - ESCE (International Business School), - HEIP (School of Advanced International and Political Studies established in 1899) and - IFG Executive Education (division dedicated to lifelong executive training).
The emblematic building, Cœur Défense, designed by the architect Jean-Paul Viguier, has just celebrated its 20 years since its construction. Amundi Immobilier, co-owner of the building since 2017, has carried out works to reinvent the eight floors of the Cœur 2 building.
CŒUR DÉFENSE REINVENTS ITSELF TO WELCOME 3,500 STUDENTS IN SEPTEMBER 2022
Watch the video interview with Amar Douhane, Partner at Amundi Private Equity Funds. Founded in 2010, Sandaya is the leading player in premium outdoor accommodation and the only operator to offer exclusively 4 & 5 stars services.
vous propose un regard sur l’actualité et sur les tendances des différentes expertises d’Amundi Real Assets . L’objectif est de partager avec vous le quotidien de nos 220 collaborateurs, nos actualités, nos transactions emblématiques, mais aussi nos engagements en matière d’ESG et d’impact.
Découvrez l'interview vidéo d'Amar Douhane, Directeur Associé chez Amundi Private Equity Funds . Fondé en 2010 Sandaya est un groupe d’hôtellerie de plein air 4 et 5 étoiles. C’est l’acteur de référence du camping premium et le seul acteur à proposer uniquement des prestations 4* & 5*.
October 2021 Video presentation from Thierry Vallière on the vision and strategy of Amundi’s Private Debt team and the increasing role of ESG for the asset-class
February 2022 Panel debate with Guy Lodewyckx on how to balance financial objectives with environmental and social goals at 2021 IPEM Longchamp
February 2022 2021 Alternatives in Europe Preqin report
Top 3 Post
Amundi Private Equity Funds au capital de Sandaya
Washington Post | 17 September 2021 Yield Seekers Turn to Infrastructure, Real Estate and More
Real Assets, a source of return and diversification
October 2021 Panel debate with Guy Lodewyckx on how to balance financial objectives with environmental and social goals at 2021 IPEM Longchamp
February 202 2021 Alternatives in Europe Preqin report
1.9 gw
Once it is completed, the portfolio will generate 2.7 GWh per year
Solarig will oversee the development of the different plants
Alantra Solar will render asset management services
A investment of €1.7 billion in total into the solar power plants
Solarig will bring more than 50 power plants southern Europe
Amundi & Reichmuth: A commitment of €265m
Alantra & Solarig : A long-term partnership agreement
of social impact investing
10 years
02
310 653
tonnes of waste avoided or recycled
343 038
international micro-loan beneficiaries
13 436
people housed
408 875
care recipients
59 833
jobs created or protected
1 186
hectares of farmland protected
126 007
people trained or assisted
for 2025
OBJECTIVES
01
03
Offer at least one open-ended fund with a management objective geared towards the 2050 net zero transition for each area of expertise
Double the assets of the Impact funds In all areas of expertise to reach €1bn of Assets under Management
Establish a carbon footprint for 100% of our investments
In relation to Amundi Real Assets' employees: • Broaden the integration of ESG criteria in the remuneration policy of managers and sales staff • Reduce direct emissions per employee (2018 being the reference year)
Diversity of the Amundi Real Assets teams: • At least 30% of women in the Investment teams • At least 30% of women on the executive committee
Target Objectives
2025
* Source : A fin décembre 2021
Pour plus d'informations, visitez la page expertise dédiée
* Source: At the end of December 2021
For more information, visit the dedicated webpage
Private Equity
Private Debt
Multi-management
Infrastructure
Real Estate
Impact Investing
Bn
€10
in assets under management
Founded in 1998, Amundi's private markets multi-management business is one of the most experienced in this market in Europe.
More than 900 investments made*
20 + years of track record
A team of 17 dedicated professionals
For more than 30 major institutions*
More than 600 funds*
* Source : IPE 2021 ** GRESB : Global Real Estate Sustainability Benchmark
Access the interactive map of Amundi Real Estate assets
+ 1 200
Properties in Europe
€42 bn
of AuM
Green Star funds GRESB 2021**
4 fonds
Labellisés ISR
Worldwide
N°8
in Office Real Estate
Amundi Real Estate, Amundi’s division dedicated to asset management in real estate - which currently ranks as Number 2 in Asset Management in Europe and in the top ten worldwide* - specializes in developing, structuring and managing European focus property funds.
€60.5
bn
Assets under management*
Since inception of Amundi Real Assets (ARA) - our integrated division dedicated to real assets and private markets in Europe in 2016 - AUM have grown by nearly 60%*, reflecting the booming European alternative market. In 5 years, ARA expanded its capabilities in client-centric investment solutions with established standards in ESG (Environment, Social, and Governance), impact investing and risk management that stand as a trademark of Amundi.
220
40
1,700
employees
years expertise
assets in 16 countries
To find out more
*Source : Amundi as at end of September 2021. Including pockets managed on behalf of other expertise.
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