HSBC-backed Climate Asset Management gears up to raise US$800m for new strategy
The rubber will soon hit the road for Pollination Group's climate fund manager as it readies a second natural capital strategy.
HSBC-backed Climate Asset Management has started laying the groundwork for its second, USD800 million natural capital strategy (NCF II), in a major test of institutional appetite for exposure to the natural capital asset class.
The imminent launch of the new vehicle comes after CAM raised $1 billion, including USD550 million for its first natural capital fund which it deployed into six forestry and agriculture projects that offer carbon credit-based revenue streams, and part of the USD445 million raised for its separate carbon fund.
Planning for the new investment strategy is underway but talks with prospective investors have not yet kicked off, CEO Martin Berg told Capital Brief in an interview.
“We’re not officially fundraising, but we’re definitely in full swing in planning [what the strategy] would look like,” Berg said, adding that CAM’s investment team was assessing whether the investment strategy used in NCF I offered the right combination of geographical and asset class diversification that prospective insurance and pension fund investors are chasing.
