Hedonova, an innovative hedge fund with a focus on alternative investments, has successfully concluded a co-investment initiative in the realm of carbon credits, reaping an impressive profit margin of 18.04%.
In May 2023, Hedonova strategically invested in Wented Agri Trading Limited, a distinguished farming and forestry company that manages an expansive 367,000 acres of farmland across multiple countries including China, Thailand, India, and Vietnam. Building upon established relationships with farm owners, Hedonova facilitated growth capital, land expansion, equipment financing, and more to nurture the farm’s operations.
Hedonova played a pivotal role in providing a $4 million loan to Wented Agri Trading Limited. The loan supported the farm’s multifaceted efforts, including vital reforestation initiatives undertaken in each of the countries it operates within. To secure this investment, Hedonova obtained collateral in the form of the farm’s assets in India, with an approximate market value of $12 million.
Wented Agri Trading Limited utilised the investment capital to enhance key components of its operations, including upgrading machinery with advanced carbon dioxide sensors and providing comprehensive training to staff in carbon compliance.
Upon the completion of a thorough audit, Wented Agri Trading Limited was granted approximately 260,000 carbon credits, reflecting an approximate value of $9 million. Hedonova successfully sold these valuable credits on the European carbon exchange, effectively capitalising on the growing market demand for sustainable solutions. In this triumphant collaboration, $5.4 million of the realised $9 million profit has been designated to Hedonova, a gross profit of 35%. After expenses and tax, new returns to clients were 18.04%.
Alexander Cavendish, Hedonova’s CEO, enthusiastically expressed the exclusive opportunity, sharing, “Our valued clients can now engage in a venture that offers compelling returns while promoting their participation in sustainable practices, thus contributing to an ecologically resilient and greener future.”
Hedonova remains committed to fostering impactful investments that merge sustainability with financial growth, contributing to a brighter and greener future for generations to come.