Australia-based carbon investment manager Carbon Growth Partners (CGP) has reopened its second fund, aiming to raise an initial US$20 million by end-June 2023 and a total US$200 million by mid-2024, the company said in a statement.
The Carbon Growth Fund No.2 fund will invest in a diversified portfolio of carbon credits and carbon offset projects, seeking to provide a 20% annual return.
The announcement comes after CGP’s first fund, the Carbon Growth Opportunities Fund, significantly outperformed major asset classes including cash, stocks, bonds, gold and crypto, generating a 17% return to investors since its creation in July 2021.
“Carbon remains one of the most under-priced asset classes and we anticipate significant price rises as companies meet their commitments to reduce net emissions,” CGP’s CEO, Rich Gilmore, said in a comment.
Through the Carbon Growth Fund No. 2, investors will have the chance to capitalize on that opportunity while at the same time supporting high-quality, nature-based, and technology-based climate action projects around the world, he added.
So far, CGP has provided more than US$230 million in funding to projects in 27 countries across five continents, which have resulted in the verified reduction or removal of 37 million tons of greenhouse gases (GHG).
Furthermore, these projects have helped address 15 of the 17 United Nations Sustainable Development Goals (UN SDGs), the company underlined.
Among CGP’s priority areas for investment are nature-based climate solutions, renewable energy, and efficient household devices. The evaluation of the quality and integrity of the outcomes is carried out using a comprehensive framework taking into account a range of factors, both environmental and social, with a focus on equitable benefit sharing with local communities.
The initial capital raise for Carbon Growth Fund No.2 is scheduled to close on June 30, 2023.