Head of private equity growth Pedro Faria says the firm is trying to find its feet in a nascent market that could attract as much as $40bn within 15 years.
The firm has registered Impact Lending Fund I, a regulatory filing shows.
The €11bn manager has hired a three-person team from Fiera Private Debt to staff the new office.
The fund will invest in afforestation projects, nature-related tech and commercial forestry.
The decision to focus solely on decarbonisation was 'well received by investors', according to partner Frida Einarson.
If your ESG fund vows to exclude 'fossil fuel' securities, be sure to define what you mean by this phrase.
The fund's predecessor closed on $7.3bn in 2022.
Forestry has more to offer the sustainability revolution than carbon sequestration, according to BTG Pactual's Charlotte Kaiser.
But when they have a plan in place the results come more quickly, suggests analysis of EDCI data by BCG.
Almost 90% of impact capital is provided by Western European and North American investors, according to GIIN.