Folium Capital launched Folium Fund III LP, its regenerative natural resources fund, with an eye to raising $500 million.
Boston-based Folium, named after the Latin word for “leaf,” was founded in 2016 by Managing Partners Alvaro Aguirre, Oliver Grantham and Andy Wiltshire; all three previously held positions of leadership on the Harvard Management Company Natural Resources team. The firm currently manages over $1 billion in real assets across multiple portfolios, with diversified agriculture and forestry assets in Australia, Spain, Portugal, the U.S., and Latin American countries including Brazil and Chile.
With Folium Fund III, the firm is trying a new tack: combining agriculture and forestry into the same investment vehicle, optimizing land use across both asset classes to maximize return potential. Folium’s approach also incorporates atmospheric carbon sequestration and increased wood production, with a focus on developing new plantations that can meet both goals, for traditional uses as well as emerging technologies.
“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,” said Wiltshire. “The fund’s optionality — across forests, agriculture, and carbon — is expected to enhance liquidity with diverse revenue streams and investment maturities,” Wiltshire added.
The fund will invest across select geographies in four continents, with an investment period of four years and a term of 12 years. Folium maintains high conviction on more than 10 fruit and nut crops, focusing on managing existing investments and nurturing contact networks with proven operating partners in the Organization for Economic Co-operation and Development countries.
“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 Folium Partner Scott Estey. “The team’s commitment to sustainability and in-depth ESG tracking forms a foundation for continuous practice improvement.”