Africa | August 21, 2018

Finance in Motion and Unique raise $60 million for sustainable forestry fund

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, August 21 – The German impact investment firm and Unique, an advisory company focusing on the timber sector, are partnering on an investment fund – the Arbaro Fund – that will back sustainable forestry projects in high-risk deforestation areas in Latin America and Africa.

Fundraising for the Arbaro Fund has been slow. The fund was announced in 2016 and has reached the first close towards a target $200 million total raise. (The fund’s announcement had hoped to raise $100 million for a first close in 2016.)

Forests cover 30% of the earth’s surface and are essential for carbon capture, soil health, and biodiversity. While forest protection and management has improved in recent years, forest area is still being lost every year, largely because of industrial and agricultural activity.

Arbaro Fund is looking to make 12 investments and support 20 million metric tons (20 million tons) of carbon sequestration and the creation of 5,000 jobs. Finance in Motion has not announced a timeline for the investments.

Arbraro Fund joins other forestry-related impact investors, like New Forests, and ventures like Greenprint Partners (formerly Fresh Coast Capital) in exposing investable opportunities to protect forestlands.