New €300M Fund Targets Nature Restoration and Investor Returns

MONTRÉAL, QC – April 13, 2026 – In a significant move to channel institutional capital towards ecological restoration, Montréal-based Fondaction Asset Management (FAM) and Dutch-based Triodos Investment Management (Triodos IM) have officially launched Value Nature Fund I. The closed-end fund aims to raise €300 million to transform farmland and forests across North America and Europe into more sustainable, regenerative models.

Fondaction, a Quebec labour-sponsored fund with a nearly 30-year history in sustainable finance, is anchoring the initiative with a CAD $25 million commitment. The launch marks a pivotal moment for the growing “natural capital” investment sector, which seeks to generate financial returns by investing in the health of the planet’s ecosystems.

Tapping into Natural Capital

The fund enters a market defined by both urgent need and immense opportunity. The global economy is profoundly dependent on nature, with over half of the world's GDP—an estimated $40 trillion—relying on healthy ecosystems. Yet, the financial commitment to protect these assets falls critically short. The United Nations Environment Programme estimates that an additional $700 billion is needed annually to reverse global biodiversity loss by 2030, a figure that dwarfs the roughly $200 billion currently invested in nature-based solutions.

Value Nature Fund I is designed to help bridge this gap by framing ecological health as a tangible and valuable asset. Proponents argue that investing in “natural real assets” like soil and forests offers a powerful hedge against market volatility and inflation, which are often exacerbated by climate-related disruptions in food and timber supply chains. As institutional investors increasingly look to meet climate and biodiversity targets within their portfolios, funds that offer measurable environmental outcomes are gaining traction.

“Natural capital represents a structural response to ecosystem degradation, helping institutional investors address financial risks that can no longer be overlooked,” said Jonathan Coupland, Portfolio Manager at Fondaction, in a statement. “Our commitment to Value Nature Fund I reflects our conviction that patient, well-structured capital can drive meaningful system change.”

A Transatlantic Strategy for Impact and Returns

The fund’s strategy is built on a dual-continent, dual-sector approach. By investing in both regenerative agriculture and closer-to-nature forestry across Europe and North America, the managers aim to de-risk the portfolio. This diversification exposes investors to a range of uncorrelated value drivers, including different climates, consumer markets, crop types, and regulatory environments, thereby reducing volatility.

The core of the investment thesis lies in actively transitioning all assets to more sustainable practices. This involves two key methodologies:

• Regenerative Agriculture: This approach moves beyond simply sustaining current conditions to actively restoring soil health. Practices include minimizing soil tilling, planting cover crops to protect and enrich the soil year-round, diversifying crops, and integrating livestock. The benefits include enhanced carbon sequestration in the soil, improved water retention to combat drought, reduced need for chemical fertilizers, and increased on-farm biodiversity.

• Closer-to-Nature Forestry: As an alternative to industrial clear-cutting, this management style mimics natural forest processes. It involves selective harvesting of mature trees rather than levelling entire stands, promoting a mix of native species and age groups. This maintains the forest's complex structure, preserving habitats for wildlife, protecting soil from erosion, and increasing the ecosystem’s resilience to fires and pests.

“Fondaction's commitment as a founding investor is a powerful validation of the natural capital thesis we have been building for years,” noted Philippe Crête, Managing Director of Natural Capital at FAM. “Institutional capital has a critical role to play in transitioning the farms and forests that feed and sustain us.”

Beyond Greenwashing: The Article 9 Promise

In a field wary of “greenwashing,” Value Nature Fund I is seeking to establish its credibility by intending to classify as a Sustainable Finance Disclosure Regulation (SFDR) Article 9 fund. This is the European Union’s highest designation for sustainability, reserved for funds with an explicit environmental or social objective at their core.

To solidify this commitment, the fund has hardwired its impact goals into its financial structure. A portion of the managers' performance-based remuneration will be directly tied to achieving measurable Key Performance Indicators (KPIs) across three pillars: biodiversity and ecosystem services, climate mitigation and adaptation, and social wellbeing. This structure creates a direct financial incentive for the fund’s managers to deliver on their environmental promises, not just their financial ones.

A Tale of Two Impact Pioneers

The partnership brings together two seasoned players in the impact investing world. Fondaction Asset Management is the investment arm of Fondaction, a Quebec institution that has been a forerunner in responsible investing for nearly three decades. Its mission is to drive a positive transformation of the regional economy, and this fund extends that mission onto an international stage.

Its partner, Triodos Investment Management, is a wholly-owned subsidiary of Triodos Bank and has been a pioneer in European sustainable finance for over 30 years, with deep expertise in financing organic and sustainable agriculture. The collaboration leverages FAM’s experience in North American natural capital sectors with Triodos IM’s long track record in European sustainable food systems.

“Value Nature Fund I reflects the shared ambition between Triodos Investment Management and Fondaction Asset Management to mobilise institutional capital at scale,” stated Karel Nierop, Head of Products and Solutions at Triodos IM. “By combining our complementary expertise, this fund can provide investors a diversified way to build resilient, real-asset value while making measurable progress on biodiversity, climate and social outcomes.”

By uniting financial goals with ecological restoration, the fund represents a significant test of whether private capital can be effectively harnessed to address some of the world's most pressing environmental challenges, creating a model where healing the planet becomes a profitable and scalable enterprise.