An Australia-based investment company called Carbon Growth Partners received a $10-million investment from Singapore-based impact investor Silverstrand Capital for its Carbon Growth Fund. It managed to raise $30 million out of its $100 million initial target.
The fund aims to support projects that protect and restore nature while generating investment returns. The projects, for example, deliver co-benefits to forests, grasslands and wetlands, and the people who rely on them.
It will invest in “highest integrity” carbon credits, such as those issued by the Verified Carbon Standard (Verra) and the Gold Standard Foundation.
The Carbon Growth Fund requires a minimum investment of $500,000 and has a targeted return of 20% per annum after fees. According to Carbon Growth Partners, target returns will be generated through long-term capital appreciation and through value investing in mispriced assets.
The capital will mainly be allocated across three categories of verified carbon credits: nature-based solutions, renewable energy or activities that replace fossil fuels with clean energy sources, and household devices – activities that reduce energy demand at the household level.