France Valley, a European player in Natural Assets investment solutions, has launched its first Carbon and Biodiversity fund for institutional investors.
The fund, available from January 1, 2025, aims to raise €200 million in its initial phase and combines financial performance with sustainable environmental impact to address climate challenges.
It focuses on creating new natural carbon sinks, such as forests, among the effective and ecological methods for reducing greenhouse gas emissions. However, according to the provider, their development remains inadequate to meet global targets. By investing in afforestation projects, the fund is positioned to benefit from the anticipated surge in the value of high-integrity forest carbon credits over the coming years, shared the provider.
A portfolio management company approved by the French Financial Markets Authority since 2014, France Valley specialises in Natural Assets investments, including forestry, viticulture (the cultivation and harvesting of grapes) and agriculture.
“This fund is part of our ambition to offer institutional investors concrete, sustainable, and high-performing investment solutions,” said Arnaud Filhol, CEO and co-founder of France Valley. “By combining financial expertise and environmental commitment, we place natural sssets, particularly forests and biodiversity, at the heart of the ecological transition. They are an essential lever for capturing carbon, preserving biodiversity, and creating long-term value.”
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France Valley’s fund supports afforestation projects, which helps create new carbon sinks and sustainably managing the resulting forest ecosystems. The fund’s strategy includes owning the land where plantations are developed, with the eventual sale of these assets to companies seeking carbon and biodiversity offsets. According to the provider, this model offers institutional investors exposure to the growing European forestry and carbon credit markets while ensuring controlled and optimised exits.
Separately managed accounts offer tailored strategies with a minimum commitment of €10 million, allowing investors to align their portfolios with specific environmental goals such as biodiversity or regional focus. A pooled fund option provides a long-term, 15-year investment horizon with a minimum commitment of €2 million, ensuring stability and risk diversification while targeting balanced profitability. The fund has a hard cap of €200 million, reflecting the scale and ambition of the project.
France Valley’s approach reflects its broader mission to integrate sustainability into investment solutions. By supporting afforestation projects that address climate challenges while generating financial returns, the fund provides institutional investors with a means to contribute to the ecological transition and tap into high-growth opportunities in carbon and biodiversity markets.
France Valley’s portfolio spans 50,000 hectares and 450 forests across Europe, including Ireland, France, Germany, and the Baltic States. The company also has experience in viticulture, particularly through its holdings in the Champagne region.
