Sector developments and company hires

Alternatives ESG disclosure template launched

A group of leading alternative asset managers and industry bodies in the private and broadly syndicated credit markets has released an ESG Integrated Disclosure Project (ESG IDP) template, with the aim of enhancing transparency and consistency for both private companies and credit investors by providing a standard format for ESG-related disclosures. The template is designed to offer private companies a baseline from which to develop their ESG reporting capacity and facilitate investors’ ability to identify industry-specific ESG risks in their credit portfolios, as well as compare data across alternative asset managers more consistently.

The template is the creation of the ESG IDP, an industry initiative bringing together leading lenders in the private and syndicated credit markets to improve transparency and accountability. The ESG IDP is led by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), the LSTA and the UN-supported Principles for Responsible Investment (PRI). Founding partners of this new initiative include Apollo Global Management and Oak Hill Advisors, which - along with the ESG IDP’s executive committee - will now spearhead efforts to promote the adoption of the ESG IDP template across the market.

The ESG IDP is also supported by a coalition of market stakeholders, including CDP, the ESG Data Convergence Initiative and the LMA.

In other news…

EMEA

Chimera Capital and Alpha Wave Global have announced the launch of joint open-ended credit fund, Alpha Wave Private Credit. With initial commitments of US$2bn, the perpetual fund will be jointly managed by Chimera Capital and Alpha Wave Global, and will work to establish a diversified portfolio of credit investments of attractive risk-reward characteristics. The fund will invest in primarily private loans, although opportunities will be taken in other credit instruments too. It will focus on the US, Canada, the UK, the EU and Australia, although will operate on a global mandate. The news follows the creation of Chimera’s credit strategies department and marks a key stage in growth for both firms as they work to strengthen Abu-Dhabi’s capital solutions offerings.

North America

Fitch has promoted Lyle Margolis to head of private credit, overseeing its private credit ratings business. Based in New York, he was previously a senior director at the rating agency, which he joined in March 2019. Before that, Margolis was a portfolio manager at APG Asset Management US, having previously worked at BNP Paribas Investment Partners, StoneCastle Partners and Forest Investment Management.

Second ETF for Angel Oak

Angel Oak Capital Advisors has launched the Angel Oak Income ETF, marking the firm’s second actively managed ETF (SCI 28 October). The latest fund provides investors with the opportunity to invest primarily across US structured credit with a strong bias towards residential mortgage credit. The objective is to achieve significant yield at a moderate duration, compared to other similarly-rated corporate bond indices.