Dunes Capital has announced the launch of a venture capital fund with a target size of 50 million euros. The vehicle, called Dunes Absolute Impact FCR, seeks to generate a positive social and environmental impact together with a “competitive” financial return for its investors.
With a duration of ten years and an expected net return of 8-10%the fund will measure its impact quantitatively and in line with the conceptual and methodological framework established by the Impact Management Project and impact indicators will be used based on IRIS+ system. These impact indicators will be verified by an independent external entity. In addition, compliance with the UN Sustainable Development Goals (SDGs).
Among the main investments to be made by the fund is the development of sustainable and collaborative agriculture, improving crop management, training farmers in new work techniques that are more respectful of the environment and nature. In this sense, we will work together with local farmers, pooling services and improving their economic situation.
These types of actions will bring increases in productivity that will improve the economic conditions of the area. In addition, progress will be made in the value chain, including the basic transformation industry, this being a “clear lever for generating employment and wealth in the area,” defends the investment firm.
Another type of relevant investment to be made by the fund will be the implementation of renewable energy in disadvantaged areas through generation systems Solar photovoltaic, seeking to generate economic activity and contribute to the fight against climate change. Both agricultural energy self-consumption and the development of energy communities will be promoted with the intention of reducing agricultural production costs and improving the disposable income of the inhabitants of the geographical areas in which it is invested.
Groups at risk of exclusion
The vehicle will search for economically disadvantaged regions of Spain in which to invest in a comprehensive and holistic manner, collaborating with the economic and social development of the target areas. To this end, the recruitment policy will focus on recruiting people from groups with high risk of social exclusion (disabled, long-term unemployed, etc).
The team in charge of the project is made up of the manager Dunes Capital Asset Management, while Absolute Impact Investments will act as advisor of the vehicle, which has been classified by the CNMV within the Article 9 of the Sustainable Finance Disclosure Regulation (SFDR) of the European Union.