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Moringa Fund

Switzerland

Last updated 12 May 2020, by Impactyield.

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MORINGA is a agroforestry fund sponsored by La Compagnie Benjamin de Rothschild (CBR) of the Edmond de Rothschild Group and Office National des Forêts International (ONFI), the International subsidiary of Office National des Forêts in France. BeCitizen, a CBR subsidiary specialized in environmental strategy will also play a core role. MORINGA aims to provide an attractive return to its investors and places sustainability and high environmental and social standards at its core.

The MORINGA team is currently raising 100M€ for investment into projects in non-fertile savannahs or eroded, compacted and damaged lands in Africa and Latin America. MORINGA projects will sell staple and cash crops, fuel wood, timber and carbon credits in local and international markets. The underlying markets to be addressed exhibit strong fundamentals and long term positive trends (for example, the demand for timber and crops will continue to grow strongly as a result of global population growth and consumption pattern changes in Asian countries).



Financial description

The fund will provide a balance of capital appreciation and annual cashflow to investors. A diversified portfolio of between 10 and 12 investments will be targeted. The investees will typically be beyond the stage at which the agroforestry combination has been proven. Moringa investment is therefore mainly expected to be in the form of expansion capital that leverages the successful pilot case and takes it to a larger scale.
Moringa will typically hold its investees for 6-10 years and will actively participate at board level. Most investments will place Moringa in a controlling position. The projects will be managed by dedicated on-the-ground companies and will benefit from on-going monitoring and support from ONFI.

13 years

of track record

2011

the year funded

100,000,000 EUR

AUM

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Asset manager

Moringa Partnership

Website

Headquarters location:

SDG goals

SDG targets

Sustainable food production and resilient agricultural practices

Promote policies to support job creation and growing enterprises

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Moringa Partnership

Product track record: Fund has 13 years of track record

Target IRR: 10%

Committed Capital: 0 EUR (Euro)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: , ,

Inception year: 2011

Vintage year: n.a.

Target region: , ,

Target close date: 01/05/2012

Product term: 12 years

Assets under management: 100,000,000 EUR (Euro)

Investment size: Min: 5,000,000; Max: 10,000,000; Avg: 7,500,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: n.a.

Carried interest: n.a.

Hurdle rate: n.a.

GIIN Investors' Council Investment: No

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: contact@moringapartnership.com

Website: https://www.moringapartnership.com/

Phone number: +41 79 1280 278

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Impact Performance

n.a.

Impact thesis

In addition to providing investors with an attractive return derived from a sustainable portfolio MORINGA will contribute tangible benefits to local populations such as job opportunities, additional revenues, improved health and schooling. During MORINGA’s investment in each project, use of best practice planting techniques and the benefits of the agroforestry approach will leave behind a fertile soil. The residual quality of the soil will enhance the attractiveness of MORINGA’S projects at exit.
Moringa encourages reforestation, biodiversity preservation, climate change, soil restoration, watershed protection, etc. The strong environmental credentials of projects act as risk mitigators and by underpin longer term profitability via agro-forestry synergies and additional revenues (carbon credits, etc.).
As outlined above Morgina projects also provide strong social benefits to surrounding populations and these should ensure that projects benefit from the presence of supportive local populations and that there is a reduction or elimination of the risk of fire hazard, vandalism, theft etc. Overall the projects benefit from a significantly stronger guarantee against social & political risks.
The EUR5m Technical Assistance facility that will be associated with the fund will strengthen projects in the pre-investment and investment phases, disseminate state of the art technologies and experience and support out-grower programmes.

Impact Management

n.a.

Financial benchmark