Folium Capital has launched a regenerative natural resources fund, with the aim of raising $500m (€453.4m) from institutional investors.
The Folium Fund III fund will invest in agriculture and forestry across four continents, aiming to maximise return by optimising land use across both asset classes.
Andy Wiltshire, a managing partner of Folium Capital, said the intention is to “offer investors the opportunity to diversify, hedge inflation, and generate return through the assets our team knows best”.
He added: “The fund reflects our high conviction that forests and agriculture will continue to provide stable, long-term value as our changing world pursues a more sustainable, healthier future.
“We are confident that our long-term team of foresters and farmers with deep investment expertise is a strong fit for this long-term sector. The fund’s optionality – across forests, agriculture, and carbon – is expected to enhance liquidity with diverse revenue streams and investment maturities.”
Wiltshire said the fund’s forest strategy ”reflects a rapidly changing world with dual demands on forests”. He added that Folium’s approach includes atmospheric carbon sequestration and increased wood production for traditional uses and newer technologies. The fund’s focus on both wood and carbon is enhanced by its emphasis on developing new plantations that can meet both goals.
The fund’s agriculture strategy will address the growing global demand for healthy, nutritious plant foods, and focuses on the development of new orchards and vineyards.
Scott Estey, a partner at Folium Capital, said: “We believe that our global view, when combined with our investment selection and risk management processes, and our history of strong relationships with local partners, is essential to achieving quality returns for our investors. The team’s commitment to sustainability and in-depth ESG tracking forms a foundation for continuous practice improvement.”
Folium’s current portfolio of sustainably managed forestry and agriculture assets are diversified across Australia, Brazil, Chile, Panama, Portugal, Spain, the US, and Uruguay.
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