Regenerate Asset Management, a specialist climate impact investment manager with a focus on agriculture, has announced the launch of a €50 million regenerative agriculture platform in Spain. The investment will be used to convert 2000+ hectares of conventional farmland away from intensive cereal production and into high value tree crops of pistachios and cherries, alongside livestock.
The farms have huge potential for long-term value by expanding and diversifying cropping and production. A finely crafted regeneration plan will be implemented across the farms to establish farming principles which restore soil health and revitalize biodiversity. Alongside the production of sustainable food and fiber, the farms will generate opportunities to sell carbon credits by sequestering and storing carbon in the farmland soils.
Commenting on the deal, Ben Stafford, Chief Executive Officer of Regenerate, said, “We are facing a triple environmental collapse of climate, water and biodiversity. The world’s collective impact so far has been to tackle one issue, this investment will tackle all three.”
Ryan Cameron, Chief Investment Officer of Regenerate, elaborates, “This is a distinct opportunity to create both immediate and long-term value through smart, sustainable practices. We’re diversifying crops and introducing livestock to increase productivity and create additional revenue streams. The land benefits from long-term sustainable water and our regenerative approach will further bolster its water resilience. We will focus on improving costs and driving profit per hectare while promoting ecological health. By moving away from chemical pesticides and fertilizers and towards natural, microbe-rich alternatives, we’ll improve soil health, lower input costs and create a thriving balanced ecosystem. It’s a win-win for the environment and the bottom line.”
Supported by Regenerate’s Regenerate European Sustainable Agriculture (“RESA”) fund, this deal advances Regenerate’s overall mission to attract capital investment to drive systemic change in agricultural practices and helps further establish regenerative agriculture as an integral pillar of the growing natural capital asset class.
In 2023, the fund launched with a €150 million cornerstone investment from the M&G’s Catalyst strategy – a £5 billion purpose-led flexible private markets strategy which invests globally in innovative solutions to some of the world’s biggest environmental and social challenges while seeking to deliver long-term financial returns to investors. The Catalyst strategy invests on behalf Prudential’s 5 million UK customers.
The RESA fund announced its first investment in February 2024 – a €40 million investment to create a scaled blueberry business in Central and Southern Portugal – newly launched as Regen Blue. At the time, Stafford explained, “Regen Blue is well-positioned to transition its production system towards regenerative practices, supported by a team with a strong commitment to sustainability and a commendable operating history,’ noting that the operation had already started to integrate cover crops with excellent results. The operation was also exploring further regenerative practices to help manage soil erosion and pests and would soon begin feeding the plants liquified compost which replicates the nutrient-rich forest floor. Stafford explained, “These techniques will improve profit margins and fortify the agricultural enterprise and its natural environment.”
About all of their investments to date, Stafford adds, “As investors increasingly seek natural capital opportunities, regenerative farming provides tangible environmental outcomes. These investments are rooted in defensive ownership of land assets and therefore also provide the added benefit of inflation risk mitigation. Our fund has now completed three substantial investments in the Iberian peninsula, and plans to expand its reach further across the region and North West Europe.”