Alternative Asset Funds in Sustainable Finance

As the regulatory landscape evolves to accommodate the surge in interest in sustainability, we will navigate the essential frameworks and directives that govern alternative asset and sustainability funds. We will unpack key elements such as the EU Green Deal, Taxonomy, SFDR (Sustainable Finance Disclosure Regulation), CSRD (Corporate Sustainability Reporting Directive), ESRS (European Single Reporting System), and the integration of ESG (Environmental, Social, and Governance) factors into the Alternative Investment Fund Managers Directive (AIFMD).  

The course is designed to provide an overview of the use and design of alternative asset fund vehicles in the context Sustainable Finance. Following a motivation and definition, the specific regulatory context for funds is presented. The course highlights the design, structure and actors for sustainable alternative asset funds such as climate and impact funds. It presents performance measurement for alternative asset funds and concludes with an overview of reporting in an impact and sustainability context.  

• Introduction to and definition of Sustainable Finance and alternative asset funds

• Design of alternative asset fund vehicles

  • Vehicles

  • Actors

  • Incentive and governance mechanisms of funds

• A sustainability fund through its life-cycle

  • Fundraising

  • Investment period

  • Harvesting and exit

  • Financial performance measurement

• Examples of sustainable investment strategies

  • General impact funds

  • Impact performance measurement

  • Climate funds

  • Social impact funds

  • Microfinance funds

• Regulatory context for alternative asset and sustainability funds

  • EU Green Deal

  • Taxonomy

  • SFDR

  • CSRD and ESRS

  • ESG in AIFMD

• Sustainability funds in Luxembourg

The course is a primer for individuals that would like to develop in the alternative asset fund industry in Luxembourg specifically in sustainability.