The Terra Bella Fund is a frontier private equity fund that provides early-stage project finance capital to high impact community-based forest and agricultural emissions reductions projects in developing countries. Combining climate change mitigation and the production of sustainable local and export agricultural crops is at the core of the Fund's investment objective alongside generating sustainable long-term returns for investors.
The Fund invests in projects and jurisdictional programs that generate revenue from agricultural, rural energy and/or emission reductions. The Fund’s investments are selected with the core purpose of providing valuable social and environmental co-benefits and generating emissions reductions at scale. Investments also generate sources of income for communities from production of non-timber forest products and high-value sustainably produced agricultural commodities for export.
Forest and agricultural mitigation programs seeking private sector investment are required to demonstrate the commercial viability under a number of key criteria and to negotiate transactional documents. Terra Global Capital supports the preparation of key marketing documents to engage private sector investors and emission reductions buyers. Depending on the specific private sector organization and motivation for engaging, Terra Global Capital designs transaction structures that ensure fair and sustainable terms for forest and agriculture programs and that leverage all sources of finance.
Terra Global Capital has developed an extensive suite of risk assessment tools that can identify risks and provide risk mitigation options. These include options for mitigation country risk, natural disaster risk and market risk.
The Fund has targeted a capitalization of $100 million. As a global fund, this would provide $30 - $40 million in investment for Latin America in land restoration projects in the first three years of operation (2015-2017). If successful, the fund could raise an additional $150 million and would allocate an estimated $50 million of the additional investment capital for Latin American in 2018-2020.