Private impact debt funds managed by Phenix Capital have amassed a total of 66 billion euros since 2015.
**Growing Trend in Private Impact Debt: Recent Developments and Focus Areas**
The private impact debt class is experiencing a surge in growth, according to a recent report by Dutch consultancy Phenix Capital [1]. This burgeoning sector, which focuses on investments that deliver both financial returns and positive social or environmental impact, has seen a significant rise over the last decade, with the number of funds increasing by 184%. However, the growth rate over the last year was only 1.7%.
One of the key areas of focus for these funds is the Sustainable Development Goals (SDGs). The SDG most targeted by funds in the database is SDG 1 on poverty alleviation, with 206 funds, followed closely by SDG 7 on affordable and clean energy, with 152 funds. SDG 5 on gender equality and SDG 2 on zero hunger are the next most popular goals for funds [1].
Several high-profile launches have recently taken place in this sector. Allianz Global Investors launched an Impact Private Credit strategy in 2024, which received €705m in commitments [1]. Another notable launch is Sienna Investment Managers' Sienna Biodiversity Private Credit Fund, dedicated to biodiversity preservation and restoration in Europe [1]. While this fund is not focused on Africa, it underscores the growing interest in biodiversity-related investments.
The report also includes a "deep dive" section on Latin America, focusing on the expansion of the private credit market and the focus of private debt funds on SDG 1 and SDG 2 in the region [1]. Latin America is the second strongest focus, looked at by around a fifth of funds.
The report further highlights that the share of private debt funds focused on emerging markets has decreased from 69% to 65%, while the proportion focused on developed markets has increased from 26% to 29% [1]. As of June 2025, Phenix Capital's impact database contains 423 private debt impact funds [1].
Development finance institutions contribute to the majority of funds in the impact database (282 funds), followed by foundations (197 funds), government agencies (95 funds), and banks (93 funds) [1]. The European Investment Fund launched a Green Private Credit fund of funds targeting €200m, another example of the growing interest in sustainable and impact-focused investments [1].
Demand for funding globally is being driven by a widening gap in financing to meet sustainable development needs, currently estimated to be between $2.5trn-$4trn [1]. As the private impact debt class continues to grow, it is poised to play a crucial role in bridging this financing gap and driving sustainable development.
[1] Phenix Capital Report, 2025.
- The growing interest in biodiversity-related investments is demonstrated by the launch of Sienna Biodiversity Private Credit Fund, which focuses on biodiversity preservation and restoration in Europe, showcasing a transition in business towards sustainable development.
- The private impact debt class, which emphasizes on investments with financial returns and positive social or environmental impact, has witnessed a significant rise in development finance, particularly in emerging and developed markets, driven by the demand for funding for sustainable development.
- In the pursuit of the Sustainable Development Goals (SDGs), venture capital and private equity funds are increasingly investing in areas such as energy transition (SDG 7), poverty alleviation (SDG 1), and gender equality (SDG 5), reflecting a shifting focus in business towardsBettering our planet while generating profit.
