Investment Strategy

In particular, the Fund will invest in high quality and third party ecologically certified agricultural, agroforestry and forest products; transformative plant-based food products; and innovative environmental assets such as carbon credits and Payments for Ecosystem Services. Our target investments will generate competitive financial returns for investors while at the same time conserving important ecosystems and biodiversity.

 

To optimise and de-risk investments in these assets, we leverage our strong expertise of blending commercial capital from private sector investors with development capital from public or philanthropic sources.

The  Fund  will adopt  the  International  Finance  Corporation  (IFC)  Performance  Standards  as  its framework  for  the  management  of  environmental  and social  risks  and  impacts  associated  with  the projects it  seeks to  finance.

When and where relevant and possible, N4C´s projects will also seek relevant third-party certification (e.g. FSC, Rainforest Alliance, UTZ, etc.) to further assure the compliance with internal policies and investor´s objectives.

 

Combining the individual attributes of each asset and project with innovative and blended finance models generates a powerful solution for nature conservation.

 

The investment process underpinning N4C combines the expertise of our team in financial markets and environmental consulting, blending the two  disciplines to create innovative approaches to asset allocation. Our team is comprised of sustainability experts that have worked with large organizations both as employees and as entrepreneurs offering advisory services and driving green projects in 49 countries across 4 continents. Collectively, we’ve delivered green solutions across a wide variety of green topics, with a focus on  innovative approaches to green finance.

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Investment Structure

The Fund will co-finance sustainable land use projects that meet our stringent selection criteria, generally by way of loan or equity instruments. Typical projects are supported by NGOs, international organizations or in public-private partnerships, and funded by a consortium of institutional investors.

 

Due to the Fund’s aim of catalyzing a shift in financing models and incentive structures, the Fund will only engage in transactions that can provide economic returns to investors while providing verifiable and direct habitat and biodiversity conservation outcomes. Accordingly, we do not provide any form of grant or support where we do not expect a return. As part of our risk profile, we  typically finance as a minority investor or lender.

Contributors

Eligible contributors to the Fund include:

  • independent investors, private individuals and family funds

  • charities, as an alternative model to grants

  • donors, as part of our blended finance model

  • institutional investors

 

All funds are to be pooled and invested pro rata. Investment decisions are made entirely independently of investors. As the Fund is currently pre-launch, Natural Strategies Investments is not currently marketing the Fund or seeking investment for the Fund.

Investment Process

Stage 1: Through our combined decades of experience with multilaterals, NGOs, funds and private sector financial institutions, we have a continual passive pipeline of potential investments. These are then evaluated for suitability according to our screening criteria, which include:

  • risk

  • economic return

  • tangible habitat, biodiversity and wildlife conservation

  • other ecological and social impacts

  • geographic and sector distribution

 

Stage 2: If projects meet our preliminary investment criteria, the Fund Managers will engage with the company administrators and investor syndicates to conduct further inquiries and formal due diligence. If successful, specific terms of financing, including tenor, security, rate of return, key milestones, and managerial oversight and voting rights will be negotiated, and the Fund will co-finance as a minority lender.

Stage 3: our Investment Officers will monitor the progress of the investment according to key milestones and engage regularly with the company administrators, and produce a quarterly report.

Stage 4: upon project completion, funds and profits will be distributed to investors and an impact and evaluation report produced.