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New ‘natural capital fund’ a world-first for Guernsey

A first ‘natural capital fund’ has been registered locally.

The new fund from specialist alternative investment manager Gresham House, which has long used Guernsey structures for its investment funds, will invest in large‑scale habitat creation and ecological restoration projects
The new fund from specialist alternative investment manager Gresham House, which has long used Guernsey structures for its investment funds, will invest in large‑scale habitat creation and ecological restoration projects / Peter Frankland/Guernsey Press

The fund class was established a couple of years ago as a complementary offering to the long-established Guernsey Green Fund, which was an innovator in its time, offering the world’s first regulated and certified sustainable investment fund.

The natural capital fund regime provides a regulated designation for investment schemes that make a positive contribution to the natural world or significantly reduce harm to nature.

The new fund from specialist alternative investment manager Gresham House, which has long used Guernsey structures for its investment funds, will invest in large‑scale habitat creation and ecological restoration projects known as ‘habitat banks’ which support compliance with England’s 2024 biodiversity net gain regulations, an emerging natural capital asset class that enables biodiversity to be restored at scale.

Gresham House’s natural capital strategy, spans sustainable forestry, sustainable agriculture and nature-based solutions. The company is positioned in the top 10 globally of natural capital managers.

‘The Guernsey Natural Capital Fund designation shows our commitment to supporting investment in nature at scale,’ said Peter Bachmann, managing director of sustainable infrastructure at Gresham House.

‘Our biodiversity creation strategy demonstrates Gresham House’s contribution to the transition to a nature positive economy by protecting and restoring biodiversity while generating returns for our investors, and we are proud to receive this world-first designation.’

Guernsey’s natural capital fund regime is the world’s first regulated natural capital and biodiversity investment fund designation and provides investors with confidence through clear governance, transparency and robust oversight, that contributes to the internationally agreed objective of abating natural capital loss.

‘Guernsey provides an exceptional environment for innovative investment structures,’ said Paul Duquemin, independent non-executive director of Gresham House’s Guernsey-based management company.

‘The island’s regulatory framework, professional expertise and focus on sustainable finance were important factors in the decision to domicile this fund in Guernsey.’

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