MALDIVES, INDIAN OCEAN – `RIL 2017: Overview of a coral reef teeming with life with a couple … [+]
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Given that the oceans cover more than two-thirds of the earth and play an important role in sustaining the planet’s ecosystem, you would have thought they would be a top priority for philanthropists and investors looking to save the planet.
And as the land-based carbon economy grows stronger with numerous plans to plant hundreds of thousands of new trees and other nature-based solutions, the multi-trillion-dollar “blue economy” is often overlooked.
Luckily, some organizations and investment funds – like Ocean 14 Capital – are literally delving deep into this space and spearheading the work to find sustainable solutions to improve the health of our oceans.
“Without a healthy functioning marine ecosystem, there is no chance for human survival on the planet, and many people still don’t realize it,” said Chris Gorell Barnes, co-founder of Ocean 14 Capital and investment advisor to the fund.
To that end, he added that the oceans absorb 80% of the excess heat and 60% of the CO2 in the atmosphere. It also plays a key role in providing fresh oxygen and food security for millions of people.
It’s no wonder that according to Gorell Barnes, the ocean economy is worth $2.8 trillion globally, making it the seventh largest economy in the world.
He said that while there is a lot of interest in seagrass, mangroves and coastal biodiversity, there are many other aspects of the blue economy that still need to be explored, such as the role the seafloor plays in absorbing carbon.
“Unless we have a healthy, thriving marine ecosystem, the ocean will not be able to sequester carbon,” he explained. “Without healthy fish stocks or coral, the ocean cannot produce the oxygen we breathe.
“Investing in the blue economy and making it sustainable is the most important investment thesis of our time. We need sustainable fisheries if we are to feed the world and ensure food security.”
The €150 million impact fund Ocean 14 Capital is on track to invest in eight companies this year and expand its portfolio to 20-25 companies within three years.
Following the Principality of Monaco’s EUR 10 million commitment from the sovereign wealth fund, the private equity firm has now raised EUR 100 million since the impact fund was launched for the growth phase in December 2021.
The fund aims to act as a tidal wave to boost the blue economy, a sector that uses marine resources for economic growth and conservation.
The Impact investment fund has already made three investments this year, with shrimp farming technology specialist SyAqua among the fund’s early beneficiaries.
The plastic management platform AION has also received investments. The Norwegian company uses proprietary technology to offer ‘Circularity As A Service’ to large scale industries, ensuring the plastic we already have is used for as long as possible.
The Ocean 14 Capital fund will primarily focus on investments in growth stage companies. Around two-thirds of the fund will go to companies based in Europe, with the remainder to be used for investments in the rest of the world.
The company previously closed an initial deal of €80 million in December 2021, with backers including the European Investment Fund (EIF), Chr. Augustinus Fabrikker, Builders Vision, Minderoo Foundation, as well as British businessman Alex Beard and Swedish entrepreneur Niklas Zennström .
Gorell Barnes said it is now the largest fund in the blue economy and has around 900 deals in its pipeline.
“We have the science, the network, the understanding of marine conservation; We have experience building multi-billion dollar wealth management businesses and have industry expertise in investing in and executing within the industry,” he added.
“We are at a pivotal point in finance and I think it will be just as revolutionary as the technological shift we have seen over the past 20 years.
“We will see how impact investing will completely change the way capital is used. There will be many new regulations that will drive institutional capital to invest in vehicles that have a positive and measurable impact on the environment and society.”
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