The vehicle has a €350m fundraising target and has also been backed by Allianz France and BNP Paribas Cardif.
From housing shortages to net-zero targets, the world’s structural challenges are aligning with timber’s strengths – and LPs are starting to price that in.
Climate Fund Managers will manage the fund, which has received cornerstone commitments from MUFG, FinDev Canada and the Green Climate Fund.
The vehicle has a $200m fundraising target and will add a further 40,000ha of forestry in Paraguay.
The permanent crops vehicle has received commitments from institutional LPs in Europe, North America, Australia and Chile.
The farmland and timberland investor will pursue its strategy of repositioning undervalued assets through organic and regenerative conversion, operational efficiency and decarbonization.
Climate Fund Managers’ $1.06bn final close for Climate Investor II is a win for climate finance in frontier markets. It’s also a reminder that standardization remains elusive.
Co-founder Nick Dilks says allocation and liquidity challenges kept some LPs from backing the vehicle, which pursues large-scale mitigation, biodiversity and habitat restoration projects.
The blended finance fund manager previously structured the $1.6bn Galapagos debt-for-nature swap, in which CI2 was an investor.
Managing director John McKenna says LPs are waking up to the fact ‘40% of the world’s biodiversity is in Latin America’ and are allocating accordingly.