Mirova’s new €350m fund targets sustainable land and biodiversity

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The Swiss company Pamoja is developing over 350Ha of its own farms in Kilimanjaro region, Tanzania to grow macadamia nuts, coffee and bananas. 
Fintech Global | 6 December 2023

Mirova’s new €350m fund targets sustainable land and biodiversity
 
Mirova, an innovator in natural capital investment strategies, recently announced the successful deployment of their LDN fund.
 
This accomplishment was marked by three key investments: USD 9.3 million in Koa, a Swiss-Ghanaian company; USD 8.5 million in Pamoja, a leader in sustainable macadamia nut production in Kenya and Tanzania; and USD 6.5 million in Terrasos, a Colombian firm focused on conserving biodiversity-rich land.
 
These investments have elevated the LDN Fund’s portfolio, co-promoted with the United Nations Convention to Combat Desertification, to a total of 13 sustainable land management projects across Latin America, Africa, and Asia. Initially launched in 2017 as a blended finance vehicle, the LDN Fund has raised $208 million from prominent public institutions and private investors.
 
Mirova is also launching the Mirova Sustainable Land Fund 2 (MSLF2), building on the LDN Fund’s pioneering experience. MSLF2 aims to support the transition and decarbonisation of agricultural and forestry value chains. It seeks to generate financial gains and a positive impact on climate change adaptation and mitigation, biodiversity preservation, and social inclusion, with a particular focus on supporting women in emerging countries.
 
Structured similarly to the LDN Fund, MSLF2 will combine public and private capital, with public funds reducing risk to attract private investment. The fund will focus on sustainable forestry, agroforestry, and regenerative agriculture, primarily through debt financing. Mirova’s team, boasting nearly 20 individuals with solid technical expertise, will lead the initiative.
 
MSLF2’s launch reflects the critical need for investment in nature’s restoration and protection. With half of the world’s GDP reliant on nature’s services, and the vital role ecosystems play as carbon sinks, Mirova aims to contribute significantly to reducing greenhouse gas emissions by 2050. This initiative aligns with Mirova’s strategic goal of expanding investments in natural capital.
 
Deputy CEO, Head of Private Equity and Natural Capital at Mirova, Anne-Laurence Roucher, commented, “Building on the success of the LDN fund, which is reaching the end of its roll-out, we are proud to announce plans to launch our second-generation fund dedicated to sustainable land management. MSLF2 will be offered to public bodies and institutional investors keen to combine long-term financial performance with the transition of agricultural and forestry value chains.
 
“It fits perfectly with Mirova’s strategic objective to grow its investments in private assets, and in particular natural capital, through our dedicated platform.”
 
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