Private equity firm Avenue Capital's Sustainable Solutions Fund (ASSF) offers private debt to companies and projects that it says have a positive and measurable environmental impact in the US.

Using a proprietary impact measuring system to analyse, set, and track specific impact targets with each company it invests in, ASSF includes these targets in the loan documents. The targets are then tracked and reported annually to the fund's limited partners (LPs).

This system tracks the investee company's alignment with the UN Sustainable Development Goals (SDGs). It also reports on principle adverse indicators (PAIs) to meet the 'do no significant harm' standard of the EU Taxonomy, as well as tracking measurable environmental impact such as the amount of renewable energy generated or metric tonnes of greenhouse gas emissions (GHG) averted.

Throughout 2022, Avenue Capital reports companies invested in by ASSF averted 522,000 tonnes of GHG emissions, extracted 75,000 tonnes of GHG emissions from the atmosphere through direct carbon capture, and recycled 3,128,985 pounds of plastic waste.

Avenue is looking to launch a second Sustainable Solutions Fund with increased exposure to global markets and a more diverse geographic coverage. It will also look to align this next fund with Sustainable Finance Disclosure Regulation by having sustainable investment as the objective.

ASSF has $411 million in assets under management.