Cartesia and Dealscribe team up on ground-breaking ESG-focused CLO fund

French Investment Manager Cartesia announces that it has launched a new article 8 fund to invest in European collateralised loan obligations (CLOs).

LONDON, UNITED KINGDOM, April 15, 2024 /EINPresswire.com/ -- French Investment Manager Cartesia announces that it has launched a new fund to invest in European collateralised loan obligations (CLOs). In addition to its objective of providing high risk-adjusted returns, Talents Descartes Credit Return 2028 employs a rigorous methodology to promote environmental and social characteristics, under the meaning of article 8 of the SFDR. This methodology is supported by Dealscribe’s independent environmental social and governance (ESG) scoring metric for CLOs.

The fund is a Luxembourg-domiciled fixed duration UCITS fund maturing in June 2028. It will invest mainly in AAA, and also AA tranches of European CLOs. It will target European institutional investors and family offices.

The fund pursues its ESG objectives through best-in-class manager selection, strict exclusion policies for some of the most problematic sectors and a policy of active engagement with managers over any underlying borrowers that are flagged as controversial. “Understanding and managing risk is the cornerstone of our investment approach,” says Tanguy Boullet, Cartesia’s founding partner. “For this reason, we have built a detailed and systematic framework to help investors avoid ESG risks in this fund.”

A further key part of the fund’s ESG methodology is the use of Dealscribe’s ESG score to identify those CLOs with the strongest ethical investment rules. “We are delighted that our ESG scores and analysis are able to support Cartesia’s investment process,” says Dealscribe founder Mike Peterson. “This fund launch is an important step towards transforming ethical corporate lending into a mainstream investment class in Europe.”

SFDR Article 8 funds, sometimes known as “light green” funds, are those that promote investments with positive environmental or social qualities where investments are directed towards companies that adhere to sound governance practices.

About Cartesia: Based in Paris, Cartesia is an independent investment manager specialising in European CLOs.
About Dealscribe: Dealscribe is a technology-driven research company based in London and New York which provides independent analysis on legal terms of financial deals.

Michael Peterson
Dealscribe
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