European private credit specialist Colesco Capital has been named as this year's Private debt manager of the year after judges praised its implementation of ESG across its operations, strong engagement and incentive linkage between sustainability and returns.

Colesco officially launched at the end of 2023 and has since achieved B Corp certification – a reflection of its commitment to high standards of governance, transparency and social and environmental performance.

From the outset, ESG and impact considerations have been embedded throughout the credit lifecycle, from origination and loan structuring to ongoing monitoring.

Loans are structured with tailored sustainability key performance indicators (KPIs) tied to margin ratchets that directly incentivise borrowers to deliver environmental and social improvements.

In 2024, Colesco raised more than €800 million ($931 million) for its debut impact credit fund with cornerstone commitments from APG Asset Management and Rabobank.

Earlier this year, Colesco expanded its platform further, taking over the management of an Article 9 impact credit fund. The Colesco Circular and Climate Credit Impact Fund (C⁴IF) is aimed at scaling circular economy businesses that support the climate transition.

One Sustainable Investment Awards judge said: "The entry's strength lies in its transparency, rigour and authenticity of integration rather than 'ESG as branding'.

"Examples such as financing for renewable infrastructure, pharmaceuticals and healthcare access projects substantiate their claims effectively."