Pension Fund KPN invests in M&G managed impact-focused private debt strategy

October 1, 2025

M&G Investments (M&G) has launched a €300 million impact-focused private debt strategy on behalf of Dutch pension fund, Pensioenfonds KPN. Aegon Asset Management – a leading investment and fiduciary manager, has selected M&G as one of the managers for the private debt mandate of Pensioenfonds KPN.

Through the expertise of M&G’s €90 billion Private Markets division, the SFDR Article 9-classified fund will provide corporate loans to businesses committed to generating positive environmental and social outcomesin the key areas of Climate & Biodiversity, Technology and Responsible Production & Consumption - themes which are closely linked to a number of UN Sustainable Development Goals.

The portfolio’s assets will be invested in impact and sustainable investments for which Pensioenfonds KPN has the intention to achieve positive and measurable social/environmental impact alongside a target risk adjusted financial return. The impact goals should be achieved without causing any significant harm to other sustainability goals (do no significant harm concept). All investments in the portfolio will need to meet a minimum set of sustainable criteria, such as exclusion criteria and KPIs. With a remit to invest globally, it is anticipated that European private corporate loans will comprise the majority of the portfolio.

To date, 12 investments have already been completed, demonstrating strong momentum and the depth of M&G’s origination capabilities across Europe. As part of its pipeline of investment opportunities, the strategy recently invested in Bollegraaf Group, a Dutch leader in advanced recycling technologies, which plays a critical role in enabling the circular economy through its innovative waste sorting and recycling systems. This investment closely aligns with Pensioenfonds KPN’s ambition to deploy its pension capital toward impactful solutions that drive the transition to a more sustainable and circular economy.

The market for impact-focused private debt has grown rapidly in recent years, reflecting strong investor demand for strategies that deliver measurable social and environmental outcomes alongside financial returns. In the last decade, the number of dedicated funds has tripled, raising more than €66 billion globally with a target size now approaching €83 billion.

Sander Van der Wel, M&G’s Director of Institutional Business Development in the Netherlands, said: “Many European companies are taking a leading role in providing solutions in areas such as clean tech, future-proofing their operations and developing systems that support real world outcomes. To do this they need the support of patient capital and long-term institutional investors are exceptionally well positioned to provide this much needed investment. Our partnership with Aegon AM’s fiduciary management team is a reflection of our long-standing relationship and demonstrates how asset managers and asset owners can develop innovative financial solutions that address global challenges, whilst providing attractive risk adjusted returns for long-term pension savings.”

Karin Roeloffs, Head of Fiduciary Management at Aegon Asset Management added: “Over the past few years we have explored the possibility of impact investing within private debt for Pensioenfonds KPN. After an extensive search trajectory with an additional focus on ESG and impact investing via a specific impact due diligence, M&G was selected for the impact corporate debt mandate. Other strategies and managers will complement this corporate debt allocation. The goal is to contribute to the impact goals and ESG themes of Pensioenfonds KPN alongside a target risk adjusted financial return with a well-diversified portfolio.”