Mirova, the French-based sustainable investor, has secured commitments approaching €100m from a variety of institutional investors for its second sustainable land fund, which is on track to reach its target size of €350m by the end of 2025, according to the firm.

The Mirova Sustainable Land Fund 2 (MSLF2), which is structured as a blended finance vehicle, had its first close and commenced operations in 2024, according to the company. It has received allocations from a range of public, private and philanthropic investors, including Abeille Assurances, Allianz France, and BNP Paribas Cardif. Early investment came from the SDG Impact Finance Initiative (SIFI) which played a catalytic role as the first junior investor.

MSLF2 is also receiving backing from development finance institutions (DFIs). FMO, the Dutch DFI and France’s Proparco have both committed to invest in the fund at the next close, which is targeted to take place “in the coming weeks”, with another close to follow in the summer, the firm told Impact Investor.

The fund seeks to support the transition and decarbonisation of agricultural and forestry value chains while generating financial returns and having a positive impact on the climate, biodiversity, and social inclusion. It is particularly interested in supporting women in emerging countries, with a focus on sustainable forestry, agroforestry and regenerative agriculture.

Mirova – which is part of the Natixis Group – entered into a strategic partnership with the Rainforest Alliance, the international non-profit, to scale up locally led and nature-based solutions for climate, biodiversity and local communities last year. The Rainforest Alliance will help Mirova create a “robust project pipeline and support high quality initiatives on the ground”, targeting impact investing initiatives across Africa, Latin America and Asia, according to the firm.

“Fostering collective intelligence and collaborating among all stakeholders is vital to accelerate the shift from nature-dependent economic value chains to a more sustainable model that enhances the incomes and rights of local communities,” said Anne-Laurence Roucher, head of private equity and natural capital at Mirova.

Mirova says that additional foundations, government agencies, bilateral DFIs, multi-lateral funds and private investors are all expected to confirm their commitments to MSLF2 in the first half of 2025.