When it comes to impact, private credit is often considered to be lagging behind other private markets asset classes. There are, however, signs that this is changing. Debt funds to hold a final close raised a combined $5 billion in 2024, the second-highest total of any asset class behind private equity. Dutch institution APG Asset Management is one major LP to turn its attention to impact debt. The €616 billion fund recently moved into infrastructure debt with an impact focus and is considering buying impact credit assets in the US. APG was one of the cornerstone investors in sustainable lending debutant Colesco, which raised €800 million for a mid-market European lending strategy with “a mission to unite capital and purpose”, the firm announced earlier this year. The Dutch firm, established in 2023, is seeking to raise between €1 billion and €1.5 billion. At €800 million, it has already become the largest private debt impact fund of its kind. In this episode of The New Private Markets Podcast, we speak to Menno van den Elsaker, head of alternative credits at APG, and Colesco CIO Danny Vroegop to discuss the growth of the impact lending market, how LPs are approaching it, and where the opportunities for investors are.