A Dutch investment manager has launched a fund seeking to finance innovative solutions to tackle the biodiversity crisis, with seed capital of €12 million, Carbon Pulse has learned.

The Amsterdam office of Privium Fund Management kickstarted the Danum Ecosystem Fund through its own Privium Selection Fund, and appointed Erwin Kooij, founder of Danum Advisors, as portfolio manager of the newly established vehicle.

Based in Luxembourg, the fund will invest in publicly listed companies developing scalable solutions to the drivers of biodiversity loss, Kooij told Carbon Pulse.

“We’ve already identified over 30 companies globally, mainly based in Europe and North America,” he said, adding that the names of the companies will be disclosed by the end of next month.

“Although the initial capital enables us to make the first investments, we are seeking additional funds from private investors. Our target is to raise between €35-50 mln.”

The bulk of the portfolio will initially include companies addressing pollution and offering soil and water remediation services, though Kooij said the fund will also focus on supporting existing value chains’ shift towards circularity.

INVESTMENT OPPORTUNITIES

Privium said in a statement that the fund will invest in companies that are part of new value chains, incorporating new approaches to R&D, manufacturing, and consumption.

“The transformation to a biodiversity-positive world is not just a necessity; it also offers investment opportunities,” the company added.

“The building blocks for the needed systems transformation are increasingly in place, including rapidly advancing computational and simulation capabilities, new materials, new production technologies, and new distribution models, as well as a willingness to adopt them.”

Biodiversity-specific funds passed $1.5 billion by the end of last year, with eight vehicle launches throughout the period despite relative underperformance across the board, according to recent analysis by Carbon Pulse.

All the newcomers were based in Europe and relatively small in size at the close of 2023, with BNP Paribas Oasis, CIRCA5000, Mirova, Xtrackers Europe, and Xtrackers USA all raising around $6 mln.

By Sergio Colombo – sergio@carbon-pulse.com

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