Colesco Capital is set to manage an Article 9 private credit fund targeting circular economy and climate transition companies, marking a significant step in scaling impact-driven investment with over €1 billion in commitments from European institutions.
Colesco Capital is set to take over the management of an Article 9 private credit fund that finances businesses involved in circular economy efforts and climate transition initiatives. This move will expand its responsible investing platform and, here’s the noteworthy part, bring in over €1 billion of capital commitments to oversee starting from January 1, 2026. According to what ESG News announced, the fund currently known as the Polestar Capital Circular Debt Fund will be renamed the Colesco Circular And Climate Credit Impact Fund. It will operate as part of Colesco’s broader multi-credit approach, which aims at achieving tangible sustainability results.
The main focus of this strategy is on providing growth capital for companies developing innovative circular technologies and climate solutions. Colesco states that the fund will primarily target borrowers whose activities produce measurable environmental benefits, covering areas like circularity, resource efficiency, and climate mitigation. Essentially, it addresses a long-standing funding gap in private credit that’s needed to help scale up these sorts of technologies. The firm frames this move as a direct response to increasing institutional demand for impact-driven credit, where financial returns go hand-in-hand with real environmental impact.
A key detail is that the entire investment team managing this strategy will be transferred to Colesco, which, according to the company, will help maintain continuity for current investors and borrowers. They also point out benefits such as access to a bigger origination network, increased capacity on their balance sheet, and a broader institutional infrastructure, things like that. Danny Vroegop, who is Co-Founder and CEO of Colesco, shared: “We took on managing this strategy because it lines up well with our long-term growth plans and adds capabilities that complement what we already have, allowing us to offer a more diverse and resilient investment solution.” He further added: “The Colesco Circular And Climate Credit Impact Fund reinforces our ability to align capital with concrete sustainability outcomes while aiming for strong financial performance.”
Colesco already enjoys substantial and diverse institutional backing. Rabobank is recognized as a cornerstone investor, meaning it’s a major supporter, and Stefaan Decraene, Chair of Rabobank’s Managing Board, remarked that “Sustainability is a key part of Rabobank Group’s strategy.” He also said the bank leverages its industry knowledge and global network to help clients prepare for the future, and being a cornerstone investor lets Rabobank engage in broader impact private credit strategies, addressing areas like climate, infrastructure, and circularity.
Beyond Rabobank, independent reports suggest wider institutional interest. IPE, for example, notes that Dutch pension asset manager APG, along with Rabobank, invested a combined €800 million in sustainable corporate loans via Colesco Capital. Additionally, Colesco aims to raise up to €1.5 billion. Media outlets like Dakota reported an initial close of more than €800 million for Colesco’s inaugural sustainable lending fund, with a target range of €1 billion to €1.5 billion. Investor activity has come from countries such as the Netherlands, the Nordics, the UK, and the DACH region. Overall, these figures point to a strong appetite among European institutional investors for private-credit exposure focused on sustainability themes.
In the broader picture, Colesco’s positioning aligns with increasing investor appetite for private-credit vehicles that offer direct exposure to transition-focused assets while providing risk-adjusted yields. Industry data shows that mid-market companies frequently depend on private lenders for scaling their capital needs. Meanwhile, circular-economy businesses, especially when moving from pilot projects to full-blown commercialization, often encounter difficulties securing enough funding. Colesco’s strategy targets loans in this mid-market segment, filling a gap that traditional banks and public markets don’t always cover.
Regulations are also a significant consideration. The fund is classified as an Article 9 product, which is the highest category under the EU Sustainable Finance Disclosure Regulation. This means it’s officially recognized as having a strong sustainability focus. Colesco affirms that all sustainability claims linked to the fund are consistent with its legal disclosures. This is especially important because Europe has been stepping up the scrutiny on greenwashing and impact claims, leading asset managers to improve their governance and reporting standards, to make sure they’re transparent.
The deal also fits into a larger trend of consolidation within the sustainable-lending space. By acquiring an existing strategy and transferring the originating team, Colesco gains rapid scale and broader origination capabilities. It’s already active in related sectors, investing in energy efficiency, renovations, and supporting mid-market borrowers through senior-secured debt.
Industry experts and policymakers have emphasized the importance of transparent impact measurement as more capital flows into climate and circular finance. Colesco has said that their strategy will focus heavily on concrete, measurable outcomes. While private-credit structures often offer the flexibility for custom impact covenants and ongoing monitoring, there’s also a call for clear, reproducible metrics and independent verification if such funds want to truly earn their Article 9 label.
For institutional investors, this transaction offers both continuity and a larger platform to access a specialized segment of transition finance. For borrowers working within the circular economy, it could open up new avenues for growth capital at a crucial stage of their commercialization journey. Colesco’s stated goal of expanding investor access and entering new markets also indicates that competition among niche lenders will probably heat up to capture the increasing pool of sustainability-focused capital across Europe.
All eyes will be on the management transition on January 1, 2026. The success of this move will essentially test whether scaled private credit platforms can manage to balance solid financial performance with genuine, quantifiable environmental impact, while also meeting the disclosure and governance standards expected of Article 9 funds.
Source: Noah Wire Services
- https://esgnews.com/colesco-takes-over-1-billion-circular-and-climate-impact-credit-fund/?utm_source=rss&utm_medium=rss&utm_campaign=colesco-takes-over-1-billion-circular-and-climate-impact-credit-fund – Please view link – unable to able to access data
- https://alternativecreditinvestor.com/2025/12/17/colesco-capital-takes-over-as-manager-of-polestar-impact-credit-fund/ – Colesco Capital has assumed management of the Polestar Capital Circular Debt Fund, renaming it the Colesco Circular and Climate Credit Impact Fund (C⁴IF), effective 1 January 2026. This strategic move aims to provide growth capital to companies developing circular economy and climate solutions, addressing the funding gap in scaling such technologies. The entire investment team from Polestar will transfer to Colesco, ensuring continuity and leveraging Colesco’s extensive resources. The fund will oversee over €1 billion in capital commitments, reflecting the rising institutional demand for impact-driven private credit investments.
- https://www.ipe.com/news/apg-and-rabobank-invest-800m-in-new-impact-loans/10128478.article – Dutch pension asset manager APG and Rabobank have invested €800 million in sustainable corporate loans through Colesco Capital, a platform specialising in sustainable loans. The exact investment amounts from APG and Rabobank have not been disclosed. Colesco aims to raise up to €1.5 billion and is in discussions with other investors, including pension funds, about further investments. The platform focuses on providing loans to companies in Western Europe, particularly in the Netherlands, supporting the transition to a circular economy and sustainable business practices.
- https://www.dakota.com/fundraising-news/report-colesco-raises-800m-at-first-close-of-climate-debt-fund – Colesco Capital has secured over €800 million in capital commitments at the initial closing of its first fund, with a target to raise between €1 billion and €1.5 billion. The fund has attracted institutional investors primarily from the Netherlands, the Nordics, the UK, and the DACH region. Colesco’s first strategy focuses on sustainable investing, providing growth capital to mid-market companies in Europe, with investments ranging from €50 million to €250 million per transaction.
- https://www.finanzwire.com/press-release/golding-raises-1155-million-for-article-9-impact-fund-790q1U340Gn – Golding Capital Partners has raised €115.5 million for its first dedicated private equity impact fund, attracting institutional investors from Germany, Switzerland, Sweden, and Portugal. The fund focuses on impact investing and is classified under Article 9 of the EU Sustainable Finance Disclosure Regulation. A successor product with a strong focus on climate technology companies in Europe and North America is scheduled for Q4 2025, indicating a growing interest in sustainable and impact-focused investment strategies.
- https://www.rabobank.com/about-us/investor-relations/funding-and-capital/sustainable-instruments – Rabobank has a Sustainable Funding Framework in place since 2016, allowing it to issue ‘green’ instruments in various formats, including covered bonds, unsecured senior bonds, subordinated bonds, commercial paper, certificates of deposit, and wholesale deposits. This framework supports Rabobank’s overall sustainability efforts and connects these with its institutional investor base, reflecting the bank’s commitment to sustainable finance and responsible investment practices.
- https://www.netzeroinvestor.net/news-and-views/briefs/dutch-sustainability-lender-invests-in-real-estate-renovation – Colesco, a sustainability-focused direct lender, has announced an investment in the newly established Circreate Group. The transaction, with Dutch Rabobank acting as a cornerstone investor, marks Colesco’s first investment in the energy transition, supporting Circreate Group’s growth ambitions. The exact amount of the transaction was not disclosed, but Colesco generally provides senior secured debt to mid-market companies with loans between €50 million and €250 million, focusing on enhancing building energy efficiency.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is recent, with the earliest known publication date being December 17, 2025. ([alternativecreditinvestor.com](https://alternativecreditinvestor.com/2025/12/17/colesco-capital-takes-over-as-manager-of-polestar-impact-credit-fund/?utm_source=openai)) No evidence of recycled or republished content was found. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The content is original and has not appeared elsewhere in the past seven days. The inclusion of updated data without recycling older material justifies a higher freshness score.
Quotes check
Score:
10
Notes:
The direct quotes from Danny Vroegop, Co-Founder and CEO of Colesco, and Stefaan Decraene, Chair of Rabobank’s Managing Board, are unique to this report. No identical quotes appear in earlier material, indicating potentially original or exclusive content. No variations in quote wording were found.
Source reliability
Score:
8
Notes:
The narrative originates from ESG News, a reputable organisation known for its coverage of environmental, social, and governance topics. However, ESG News is a single-outlet narrative, which introduces some uncertainty regarding the breadth of coverage. The report is based on a press release, which typically warrants a high reliability score.
Plausability check
Score:
9
Notes:
The claims made in the narrative are plausible and align with recent developments in the sustainable finance sector. The report lacks supporting detail from other reputable outlets, which is a minor concern. The language and tone are consistent with the region and topic, with no inconsistencies noted. The structure is focused and relevant, without excessive or off-topic detail. The tone is professional and typical of corporate communications.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is recent, original, and based on a press release, which typically warrants a high freshness score. The quotes are unique and not found elsewhere, indicating potentially original content. The source is reputable, though being a single outlet introduces some uncertainty. The claims are plausible and consistent with recent developments, with no significant issues identified.
