SLM joins Natural Capital Investment Alliance
November 2021
SLM Partners has been a pioneer in natural capital investing for more than a decade. Founded in 2009, the asset manager uses investment capital to scale up regenerative farming and forestry systems. In partnership with local operators, it invests in land and real assets, while delivering positive environmental impacts on soil health, water, biodiversity, carbon storage, and building resilience to climate change and other risks. SLM Partners believes that we can only achieve truly sustainable financial returns if we are enhancing natural capital.
By joining the Natural Capital Investment Alliance, SLM Partners will become part of an effort to mobilise $10bn (€8bn) in commitments towards Natural Capital across asset classes by 2022. Supported by HRH The Prince of Wales and the UK Government, together with SLM Partners, the Alliance has announced the $10bn in commitments on the occasion of the World Leaders’ Summit at COP26 emphasizing the rising opportunities of investing in Natural Capital.
As part of his Sustainable Markets Initiative, HRH The Prince of Wales has launched the ‘Terra Carta’ – a charter that provides a roadmap to 2030 for businesses and investors to move towards an ambitious and sustainable future.
SLM Partners is launching a new closed-end fund at the end of 2021 – the SLM Silva Europe Fund – that will invest in forestry, permanent food crops, and agroforestry in selected EU countries. The fund will acquire or lease land and introduce ecological and organic management practices, working in partnership with local operators. The goal is to develop a “Climate Positive” portfolio of assets that will deliver on Net Zero targets, while having measurable impacts on biodiversity and soil health. The target fund size is €250 million.
“We are delighted to join the Natural Capital Investment Alliance because its goals are consistent with the work we have been doing for the past decade,’ said Paul McMahon, co-founder and Managing Partner at SLM Partners. “Our new European fund will further deliver on our mission of scaling up ecological land management approaches that generate attractive financial returns while enhancing natural capital.”
Since its establishment, SLM Partners has developed a strong track record in acquiring, developing, and managing rural land globally. In Australia, the asset manager raised a $75 million fund that acquired 480,000 ha of grazing land for beef cattle production. These properties are also generating and selling 250,000 tonnes of verified CO2 credits annually. In Ireland, the SLM Silva Fund has acquired more than 1,500 ha of existing forestry for conversion to Continuous Cover Forestry management. In the USA, SLM Partners manages separate accounts that acquire farmland in partnership with local farmers for transition to organic certified production. Overall, the firm has approximately $200 million in Assets under Management.