May 5, 2023
(press release)
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New fund from tenured Folium team meets increasing market demand, as the world’s growing population pursues a more sustainable, healthier future. Folium Capital (“Folium”), a highly experienced private equity investor focused on the sustainable management of forest and agriculture assets, today announced the launch of Folium Fund III LP, its Regenerative Natural Resources Fund (the “Fund”). The Fund will invest in agriculture and forestry across carefully selected geographies on four continents – aiming to maximize return potential by optimizing land use across both asset classes, while explicitly positioning the Fund to provide a positive contribution toward efforts to mitigate climate change, and to do so in a manner that is accretive to investor returns. "After investing together in natural resources for more than 18 years, 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.” Although Folium presently manages more than USD 1 billion in assets across multiple portfolios, the Fund marks the first time that Folium is combining agriculture, forests, and carbon optionality into a single investment vehicle. The Fund seeks 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. "We are confident that our long-term team of foresters and farmers with deep investment expertise is a strong fit for this long-term sector,” said Wiltshire. “The Fund’s optionality – across forests, agriculture, and carbon – is expected to enhance liquidity with diverse revenue streams and investment maturities.” The Fund’s forest strategy reflects a rapidly changing world with dual demands on forests. 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 is enhanced by its 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.” Folium’s current portfolio of sustainably managed forestry and agriculture assets are diversified across Australia, Brazil, Chile, Panama, Portugal, Spain, the United States, and Uruguay. For more information about Folium Capital and the Fund III offering, please visit foliumcapital.com or email info@foliumcapital.com. This press release is targeted to U.S. accredited investors and qualified purchasers. It does not constitute an advertisement or an offer to sell any security or the solicitation of any offer to buy an interest in the Fund or any existing or future fund or investment vehicle managed or advised by Folium and/or its affiliates or any other security. No sales of any Fund interests shall be permitted in any jurisdiction in which such offer, solicitation or sales would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The Fund interests will be offered only to accredited investors, including "qualified purchasers" as defined by Section 2(a)(51) of the Investment Company Act, in reliance on the exemption from registration set forth in Rule 506(c) of Regulation D promulgated under the Securities Act. Under Rule 506(c), general solicitation of offerings is permitted, however, prospective investors in the Fund may be asked to provide supporting documentation satisfactorily to the general partner of a prospective investor's status as an accredited investor and/or a qualified purchaser. The Fund has not been and will not be registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws. Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every investor. Private investments are generally an illiquid asset class; shareholders cannot sell their investments when they want to without potentially facing high losses.
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