Listed UK asset manager Schroders is to acquire a majority stake in impact investor BlueOrchard, underscoring the growing mainstream investor interest in this extension of the ESG investing movement. Impact investors are those which make investments with the intention of generating positive social or environmental impact alongside a financial return. BlueOrchard has around $3.5 billion in assets under management across credit, private equity and infrastructure, and partners with leading global development finance institutions for blended finance mandates. Schroders said the deal would support the expansion of its “sustainability capabilities” and accelerate its growth in private debt and private equity investments in emerging markets. Major Dutch pension funds ABP and PGGM previously had investments in funds managed by BlueOrchard, but they had to pull out due to regulatory changes in the Netherlands. This new move by Schroders is thought to be the first time a large European asset manager has made such a strategic move into impact investing. In the US, Goldman Sachs Asset Management acquired impact investor Imprint Capital in 2015.

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