Natural capital investment manager Mirova has launched its latest land restoration strategy and confirmed its €208 million Land Degradation Neutrality Fund has completed deployment.
Mirova Sustainable Land Fund II will invest in agroforestry, sustainable forestry and regenerative agriculture projects in developing countries.
The blended finance vehicle will deploy capital mainly through debt financing as it emulates the approach of the LDN Fund.
Mirova head of natural capital Gautier Quéru said in a statement: “In an international regulatory framework that is encouraging companies and investors to take greater account of their impact on the climate and nature, this new fund dedicated to the restoration and protection of terrestrial ecosystems should enable investors to embrace the strong trend aimed at transforming the value chains most dependent on nature, while targeting a financial return by drawing on Mirova’s proven experience in this area.”
The UN issued a tender to select a manager for the LDN Fund in 2015, with Mirova launching it in 2017. The vehicle had a €300 million target and closed on €208 million in 2021, having taken commitments from Allianz and BNP Paribas, among others.
The LDN fund closed three transactions to complete its deployment. The vehicle invested in Koa, a Swiss-Ghanaian B Corp that seeks to add value to the cocoa value chain; Pamoja, a sustainable macadamia nut production benchmark organization in Kenya and Tanzania; and Terrasos, a Colombian company that conserves biodiversity-rich land through habitat banks.
Anne-Laurence Roucher, Mirova deputy CEO and head of private equity and natural capital, said: “Mirova Sustainable Land Fund II 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.”