The local authority pension scheme asset manager has launched several ESG and responsible investment public and private market vehicles in the last three years.
Chief executive Kevin Schwartz says commitments from the firm’s largest existing LPs grew by as much as 50% and played a key role in pushing Food Chain Fund VI beyond its $1.5bn target.
The Article 9 fund will invest in projects to restore forests, wetlands and mangroves in developing countries.
Private impact credit strategies in emerging markets are ‘resilient, uncorrelated to the broader market,’ amid the fundraising squeeze, Blue Earth head of credit Amy Wang says.
The firm has cashed in on its long history and track record to raise the third-largest dedicated food and ag fund.
The firm will invest growth capital in companies supporting emissions avoidance in agriculture and emissions sequestration via natural assets.
The Australian vehicle has been preceded by a separate account worth ‘more than A$100m’ that is implementing a similar strategy and is about to close on two NSW properties.
The firm has already deployed approximately 40% of the vehicle and has had a A$1.5bn bid accepted by listed Australian agribusiness Costa Group.
Partner Christina Ulardic says many of the firm’s existing investors returned to back the firm’s second flagship vehicle.
The pair hope to reduce the risk for commercial financing and want to catalyze ‘hundreds of millions’ more in investments.