Folium Capital has launched a regenerative natural resources fund, with the aim of raising $500m (β¬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 βoffer investors the opportunity to diversify, hedge inflation, and generate return through the assets our team knows bestβ.
He added: βThe 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.
βWe 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 fundβs optionality β across forests, agriculture, and carbon β is expected to enhance liquidity with diverse revenue streams and investment maturities.β
Wiltshire said the fundβs forest strategy βreflects a rapidly changing world with dual demands on forestsβ. He added that Foliumβs approach includes atmospheric carbon sequestration and increased wood production for traditional uses and newer technologies. The fundβs focus on both wood and carbon is enhanced by its emphasis on developing new plantations that can meet both goals.
The fundβs 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: βWe 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 teamβs commitment to sustainability and in-depth ESG tracking forms a foundation for continuous practice improvement.β
Foliumβs current portfolio of sustainably managed forestry and agriculture assets are diversified across Australia, Brazil, Chile, Panama, Portugal, Spain, the US, and Uruguay.
To read the latest edition of the latest ΒιΆΉΣ³» Real Assets magazine click here.
