M&G Investments – Forging sustainable investments in European leveraged finance and CLOs: Part 1

In the past two years, the proportion of European assets under management with an ESG overlay (as measured by funds that are categorised as Article 8 and 9 under the Sustainable Finance Disclosure Regulation, or SFDR) has risen to nearly 60%1. Given the size and maturity of the private companies that populate the large-cap European leveraged finance markets as well as the sophistication of their private equity owners, is it reasonable to expect that leveraged finance assets under management – in funds and collateralised loan obligation – will advance at a similarly frenetic rate?