Folium Capital, a specialist investment firm based in Burlington, Massachusetts, has announced the launch of its Regenerative Natural Resources Fund, Folium Fund III LP, with the aim of raising $500 million. The fund will be used to acquire forestry and agriculture assets, taking advantage of opportunities presented by efforts to reduce carbon emissions and the growing demand for healthy food.
Folium's focus on both forestry and agriculture in a single fund is expected to save on administrative costs and provide greater convenience for investors. The firm will primarily seek institutional investors for the fund, but qualified individuals can also invest.
Folium Capital's previous funds, which raised a total of $680 million, focused on agriculture and forestry separately. However, the firm's managing partner, Andy Wiltshire, noted that many opportunities in the marketplace contain both agriculture and forestry development. By investing in both sectors from a single fund, Folium aims to maximize return potential by optimizing land use across both asset classes.
The launch of Folium Fund III LP comes at a challenging time for private-capital firms, which are finding it difficult to raise capital due to rising interest rates and a slowdown in deal making. However, Folium's strong track record and commitment to sustainability make it an attractive investment option for investors interested in the opportunities presented by sustainable forestry and agriculture.
Folium Capital has more than $1 billion in assets under management, invested across eight countries. The new fund will mark the first time the firm combines agriculture, forestry, and carbon optionality into a single investment vehicle. The fund seeks to raise capital from accredited investors and qualified purchasers, with an investment period of four years and a term of twelve years.
Folium focuses on both wood and carbon in its forestry strategy, as well as its emphasis on developing new plantations. The firm is committed to sustainability and in-depth ESG tracking, which forms a foundation for continuous practice improvement.
"We are proud to launch our Regenerative Natural Resources Fund and offer investors the opportunity to diversify, hedge inflation, and generate return through the assets our team knows best," said Andy Wiltshire, Managing Partner of Folium Capital. "The Fund reflects our high conviction that forests and agriculture will continue to provide stable, long-term value as our changing world pursues a more sustainable, healthier future."
