Arbaro announces USD 110 million closing
Frankfurt am Main, November 09, 2020 – The private equity fund Arbaro Fund (Arbaro) has announced its second closing with new commitments totaling USD 50 million growing the fund to USD 110 million. Through investments in sustainable forestry plantations in Latin America and sub-Saharan Africa, Arbaro helps mitigating effects climate change. Arbaro received new investments from development finance institutions DEG, FMO, and GCF, who is the lead investor with a contribution of USD 25 million. Additionally, the sustainable forestry fund attracted private capital from Landesbank Baden-Württemberg (LBBW), and impact investor and philanthropist Antonis Schwarz.
“This investment is a great opportunity to showcase how GCF can help attract private and institutional funding to this important sector to address climate change,” says Tony Clamp, Director of GCF’s Private Sector Facility.
“Growing trees is the most efficient way to remove carbon dioxide from the atmosphere. Already in 2017, our bank has formally defined sustainability as one of the four strategic cornerstones for our business. With our investment in Arbaro we underscore our commitment to climate protection” said Thomas Rosenfeld, CEO of LBBW Asset and Wealth Management and chair of the LBBW sustainability board.
“We are so pleased with having finalized the second closing despite these very unusual COVID-era circumstances, big thanks to our investors for their innovative and flexible approach! We are excited to move forward with the next investments,” said Hanna Skelly, Managing Director of Arbaro Advisors GmbH, the investment advisor of the fund. “Forest plantations, when developed and managed in environmentally, socially and economically responsible manner and following internationally recognized safeguards – as is our approach- provide an efficient, sustainable, long term source of raw material for the local markets. This is important because the wood demand is increasing and puts any remaining natural forests at risk. Our projects are also important socioeconomically – they provide significant rural employment and livelihood alternatives allowing people to stay in their home regions rather than move to urban centers.”
About Arbaro Fund, SLP
Arbaro is a Luxembourg-based private equity fund managed by FiM Asset Management S. à r.l. The fund’s investment advisor is Arbaro Advisors GmbH, an investment advisory company jointly established by Finance in Motion – a leading impact asset manager, and the UNIQUE Group – a leading forest consulting and forest management firm. Arbaro invests in sustainable forestry projects in Latin America, the Caribbean, and Sub-Saharan Africa, in countries where biophysical growth conditions for forests are ideal. By establishing a renewable resource through sustainably managed and FSC-certified forest plantations, Arbaro provides significant mitigation and adaptation benefits in its target countries. By supporting the development of the sustainable forestry sector in its target countries, Arbaro contributes to overall economic development while earning positive returns for its investors.
Arbaro is supported by the European Investment Bank as anchor investor, the Finnish Fund for Industrial Cooperation as an experienced forestry investor, and private-sector investors including fair-finance Vorsorgekasse, GLS Treuhand, and Girteka Logistics.
For more information, visit www.arbaro-advisors.com
Press Contact, Arbaro Fund
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Phone: +49 69 271 035-580