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Land Degradation Neutrality Fund seeks asset managers

The United Nations Convention to Combat Desertification is leading the $2bn-a-year initiative and is calling for expressions of interest from asset managers to help manage the fund.

The Global Mechanism (GM), a financial facility of the United Nations Convention to Combat Desertification (UNCCD), is seeking expressions of interest from asset managers to partner on the establishment of a multi-billion dollar fund dedicated to land restoration and rehabilitation projects worldwide.

The Impact Investment Fund for Land Degradation Neutrality is targeting the mobilisation of $2 billion annually and the restoration of 12 million hectares of land each year. It is designed to attract investment from the public and private sectors – including pension funds, private foundations, high net worth individuals, impact investors and development finance institutions – to help restore the 2 billion hectares of degraded land worldwide.

The group is calling for expressions of interest from qualified institutions in a role that will involve identifying and securing anchor investors, co-leading the structuring and establishment of the fund, supporting the design and implementation costs and acting as a promoter and future fund manager.

Representatives at UNCCD would not disclose the expected returns of the fund at this stage as the fund structure is still up for discussion. But it will offer access through local currencies and a range of financial instruments, according to the document calling for expressions of interest seen by Agri Investor.

The fund is expected to launch in December 2015 in Paris.

Shortlisted candidates will be invited in mid-July to submit more detailed offers.

For more information on the application process and requirements, click here.