Regenerate, a climate-focused asset management firm striving to mitigate climate change and protect biodiversity, has received a significant boost to its sustainability efforts.
M&G, a substantial British peer, has committed to investing up to 150 million euros ($165m) into Regenerate’s inaugural fund and will take an equity stake in the company.
Regenerate, which was launched in 2019, is one of the asset managers leading the charge towards a sustainable future, focused on the better management of the world’s “natural capital.” With a particular emphasis on private-market assets with measurable impact, Regenerate’s inaugural fund, the Regenerate European Sustainable Agriculture Fund, has M&G as its cornerstone investor.
Regenerate’s fund is strategically designed to invest directly in agricultural businesses in Europe that are committed to producing “regenerative and climate positive produce.” This investment approach extends to improving soil health, water conservation, emissions, and biodiversity. The exact size of M&G’s equity stake in the firm, which is to be taken through its Catalyst strategy, has not been disclosed.
Regenerate CEO Ben Stafford highlighted that, “Regenerative agriculture is an increasingly important part of institutional investment in North America and Canada, but under-invested here in Europe. Our fund is the first of its kind, offering our clients exposure to an asset class which provides real asset diversification, deep and long-term positive impact with inflation linkage.”
Beyond this investment, both Stafford and Regenerate’s Chief Investment Officer Ryan Cameron have a long history of commitment to sustainable investment. They previously worked together for over a decade at sustainability-focused investor Impax, financing and managing assets including wind farms in Finland and Ireland.
Regenerate’s investment staff, based in Yorkshire and London, consists of a 14-member team. The firm also runs a venture capital arm focused on agriculture technology.
Niranjan Sirdeshpande, Global Head of Investment at Catalyst, voiced support for the new partnership, saying, “We are proud to support Regenerate with this pioneering fund which aims to reduce agriculture’s impact on the environment, improve human health and social outcomes, and achieve attractive risk-adjusted returns.”
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