Nuveen Global Impact Fund holds $150m first close

Alessia Argentieri
22 July 2020

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Nuveen has held a $150m first close for Nuveen Global Impact Fund, which is targeting a final size of $400m.

Nuveen is a local investment firm with $1tn in assets under management and operations in 27 countries. The firm offers a range of investment solutions designed to secure long-term financial goals of institutional and individual investors through a wide array of vehicles and customised strategies.

Nuveen is controlled by Teachers Insurance and Annuity Association (TIAA), which acquired the firm from an investor group led by Madison Dearborn Partners for an enterprise value of $6.25bn (inclusive of Nuveen debt) in October 2014.

"The current pandemic heightens the need for investment in mitigating accelerated climate change, pollution and waste, and in creating a more inclusive economy addressing inequality," said Rekha Unnithan, co-head of private markets impact investing at Nuveen. "Low-income individuals have been hit the hardest by Covid-19, further widening the equality gap as the lack of access to quality and affordable services like education, health and financial products is more starkly visible than ever."

Investors
Nuveen Global Impact Fund has attracted several institutional investors, including Danish pension fund Velliv, which committed $50m in capital. Nuveen's parent company TIAA also made a commitment to the fund's first closing.

"A combined focus on both investment performance and advancement on issues relating to the United Nations Sustainable Development Goals (SDG) by the Global Impact Fund was an important motivation for the fund's investors," said Unnithan.

Investments
Nuveen Global Impact Fund seeks to drive positive change in two critical sustainable development challenges – inclusive growth and resource efficiency. The fund's investment team will pursue direct private equity investments across both themes, targeting strong risk-adjusted private equity returns.

The vehicle's strategy will have a special focus on six of the UN's SDGs set out as part of the Paris Agreement: SDG1 – no poverty; SDG 2 –zero hunger; SDG 3 – good health and wellbeing; SDG 10 – reduced inequalities; SDG 12 – responsible consumption and reduction; and SDG 13 – climate action.

The fund will invest in growth-stage companies in developed and emerging markets that are at an inflection point where Nuveen can help them scale.

The fund will also target investments enabling disruptive businesses that create efficiency and reduce waste, with a primary focus on developed markets.