ILX Fund allocates initial $400 Million of Dutch Pension Funds to emerging market private credit
Amsterdam-based ILX Fund, in partnership with Dutch pension funds ABP, BpfBouw, and Vervoer, has invested $400 million in financing 17 projects across nine countries. ILX launched its first fund last year and raised a total of $1.05 billion from the three pension schemes.
The fund focuses on syndicated loans originated by international development banks, such as the EBRD, Asian Development Bank, Inter-American Development Bank, and African Development Bank. ILX aims to mobilize institutional private capital to support projects in emerging markets. The fund has already signed investment contracts worth $400 million and plans to invest the remaining $650 million in commitments over the next year.
ILX is also preparing to launch a second fund worth $2 billion and is exploring the interest of Nordic pension funds. The investments made by ILX include 17 projects across developing countries, covering sectors such as sustainable energy, industry, infrastructure, and agribusiness.
The fund’s goal for the future is to reduce reliance on certain types of loans and focus more on direct project financing. ILX operates with a floating-rate structure, which insulates its investors from rising interest rates. While financing costs have increased, the fund still identifies viable projects at the current interest rate levels. ILX’s floating rate structure is an attractive feature for pension funds seeking investment opportunities.