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.
The firm has become a prolific early-stage venture capital investor and has backed more than 130 companies since it was founded in 2018.
Kilter Rural has used its initial capital raise to purchase several assets in the southern Riverina region of New South Wales, with a pipeline of further assets nearby.
The fund received a $30m commitment from CPP Investments in August and will create high-integrity carbon credits by permanently and legally preserving all of its reforested trees in the Amazon.