Private equity firm Folium Capital has announced the launch of Folium Fund III LP, its Regenerative Natural Resources Fund.
The fund will invest in agriculture and forestry on four continents and the launch marks the first time that Folium is combining agriculture, forests, and carbon optionality into a single investment vehicle. The fund is looking to raise USD 500 million in capital from accredited investors and/or qualified purchasers; it will have an investment period of four years and a term of twelve years.
Folium’s approach includes atmospheric carbon sequestration and increased wood production for traditional uses and newer technologies. The fund’s focus on both wood and carbon includes an emphasis on developing new plantations that can meet both goals.
The fund’s agriculture strategy reflects the growing global demand for healthy, nutritious plant foods, and focuses on the development of new orchards and vineyards. Folium maintains high conviction on more than ten fruit and nut crops, focusing on exposure in the Organisation for Economic Co-operation and Development (OECD) countries, where Folium manages existing investments and maintains established contact networks with proven operating partners.
“We believe that our global view, when combined with our investment selection and risk management processes, and our history of strong relationships with local partners, is essential to achieving quality returns for our investors,” said Scott Estey, Partner of Folium Capital. “The team’s commitment to sustainability and in-depth ESG tracking forms a foundation for continuous practice improvement.”