Impact investment management firms Triodos Investment Management and Fondaction Asset Management (FAM) announced the launch of Value Nature Fund I, a new closed-end natural capital fund aimed at transitioning farmland and forests to regenerative, closer-to-nature practices across North America and Europe.
The new fund is being launched with a C$25 million (USD$18 million) commitment from Fondation, and a €300 million (USD$351 million) target size.
According to the firms, the new fund will bring together FAM’s expertise in impact-driven investments in North American environmental markets and natural capital sectors and Triodos’ track record in impact investing in European sustainable food and agriculture systems, to invest in regenerative agriculture and closer-to-nature forestry across Europe, Canada and the U.S., targeting full conversion of all portfolio assets to these sustainable practices.
Karel Nierop, Head of Products and Solutions at Triodos IM said:
“Value Nature Fund I reflects the shared ambition between Triodos Investment Management and Fondaction to mobilise institutional capital at scale for the transition of farmland and forests to regenerative, closer-to-nature practices.”
The firms said that the launch of the new fund comes amidst an unmatched opportunity for investors to achieve multiple objectives through investing in natural real assets, including the creation of value from the transition towards sustainable food and timber supply chains, hedging of portfolios against volatility and inflationary pressures, enhancement of the resilience of critical economic sectors, and the ability to meet climate and biodiversity allocation objectives.
The fund intends to classify the fund as an Article 9 investment vehicle under the EU SFDR regulation, and is committed to achieving measurable impact KPIs across three pillars including biodiversity and ecosystem services, climate mitigation and adaptation, and social wellbeing.
Jonathan Coupland, Portfolio Manager at Fondaction said:
“Natural capital represents a structural response to ecosystem degradation, helping institutional investors address financial risks that can no longer be overlooked. Our commitment to Value Nature Fund I reflects our conviction that patient, well-structured capital can drive meaningful system change, and that Canadian institutional investors have both the responsibility and the opportunity to lead that transition.”
