On Friday, the European Investment Fund (EIF), a fund under the European Investment Bank Group charged with providing access to finance to Europe’s micro, small and medium-sized enterprises, announced that it, along with Denmark’s Chr. Augustinus Fabrikker, a major Danish institutional investor with some DKK 40 billion (about $6.2 billion) in AUM, and investment philanthropies Builders Initiative and Minderoo Foundation will become cornerstone investors in Ocean 14 Capital’s inaugural fund.
Ocean 14 the first large investment fund to focus exclusively on the blue economy. EIF has approved a commitment of EUR 35 million (about $40 million) to the fund, while Chr. Augustinus Fabrikker is allocating EUR 15 million (about $17 million). Builders Initiative and Minderoo Foundation will commit EUR 10 million together, bringing the total to €60 million.
The fund will leverage a unique combination of marine industry and nature conservation knowledge at Ocean 14 Capital, a private equity firm focused on the United Nations’ Sustainable Development Goal 14 (SDG14), which aims to conserve and sustainably use the oceans, seas and marine resources for sustainable development.
The Ocean 14 Capital Fund will target investments in growth-stage technologies and companies promoting sustainable fishing, aquaculture and alternative proteins as well as ocean conservation and health including marine flora and plastic waste solutions.
The EIF investment is guaranteed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. It also falls under BlueInvest, a European Commission initiative created in 2020 and supported by the EIF. BlueInvest is an endorsement of the importance of the global blue economy, which according to OECD predictions will grow from $1.5 trillion in 2016 to $3 trillion by 2030 and will support 200 million jobs.
“The EIF is proud to be an anchor investor in Ocean 14 Capital Fund I, which aims to foster innovation and sustainability in the marine economy,” EIF Chief Executive Alain Godard said. “The Blue Economy is strategic to the European Green Deal. We believe that our commitment will catalyze further investments and help create a well-functioning European equity ecosystem for this sector.”
“With BlueInvest, the Commission and the EIF have a powerful instrument in place to promote the sustainable blue economy as a cornerstone of the European Green Deal,” European Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevičius said in a comment on the investment. “We encourage innovative small and medium sized companies and start-ups to take advantage of the funds and we believe that the funds will enable them to deliver the innovation needed to meet our climate and sustainability goals.”
For Chr. Augustinus Fabrikker, the commitment to Ocean 14 Capital marks the tenth impact investment in its portfolio.
“Our interest in Ocean 14 Capital stems from the importance we see in ensuring sustainable business practices in the ocean to foster future prosperity for this vital part of our ecosystem alongside the unique capabilities we have identified within the team,” the fund’s CEO, Claus Gregersen said. “For this reason, we are delighted to become a cornerstone investor in this exciting venture”.
In line with SDG14, our key objective through the Flourishing Ocean’s initiative is to return our ocean to a healthy thriving state. To facilitate this, we are committed to ending overfishing; ending the dumping of plastic, heat and CO2 in our ocean; supporting the sustainable use of ocean resources; conserving key habitats; and facilitating world class research. This is why we are supporting Ocean 14 Capital’s new venture that will invest in projects aligned to our objectives,” said Dr. Tony Worby, the CEO of Australia-based Minderoo Foundation’s Flourishing Oceans initiative.
Builders Initiative’s Senior Program Officer, Peter Bryant, added, “Builders Vision Fund is excited to be part of Ocean 14 Capital’s first close. Builders is committed to developing the ecosystem of businesses focused on ocean health and sustainability. We believe the team at Ocean14 Capital have the drive and commitment to lead this impact-focused growth fund for oceans to meaningful market investments that can improve the health of our oceans.”
Friday’s announcement was made on the sidelines of the World Biodiversity Summit during the UN Conference on Climate (COP26) in Glasgow.
