July 25, 2016

Pure-play, sustainable aquaculture investment firm, Aqua-Spark, has led the most recent funding round for Icelandic Arctic char producer, Matorka, investing $2.5 million of the $5.5 million round. The rest of the round has been funded by “various international and local investors,” Matorka CEO Árni Páll Einarsson told Fish Farming Expert.

A member of the salmon family, Arctic char is gaining more notice as a sustainable species that is able to serve an undersupplied market, and has been awarded the “Best Choice” species for consumption by the Monterey Bay Aquarium Seafood Watch, reports The Aquaculturists.

This investment is the first for Aqua-Spark for 2016. Since its launch in December 2013, Aqua-Spark has pursued minority investments in small-to-medium enterprises (SMEs) that show a potential to generate significant returns, while also being environmentally and socially sustainable. To date, the company has $19.25 million under management toward its goal of $400 million by 2025, according to Undercurrent News.

Matorka will join Aqua-Spark’s portfolio which also includes Sogn Aqua, a Norwegian fish farming company; the biotech company, Calysta; eFishery, a fish monitoring agtech firm; and Chicoa Fish Farm, a Mozambique-based tilapia producer.

“Creating momentum around a sustainable alternative to salmon is important to us so we’ve been considering an Arctic char investment for some time,” Amy Novogratz, Managing Partner of Aqua-Spark, told Fish Farming Expert. “Matorka stood out as the right partner because of our aligned values – for example, their access to geothermal energy and their respect for Iceland’s natural resources, which combine to mean that they can produce fish at an excellent price; the fact they only use fish by-products in their feed at the moment, and ultimately aim to entirely replace fishmeal in their feeds; and their overall vision for healthy, ecological fish farming.”

With an eye toward the U.S. and EU markets, Matorka is planning to use the fund to support its plans for expansion and to fund the first phase of construction of a new site in Grindavik, while also completing upgrades at its two current sites. With current yearly production levels of between 50 and 60 tons, the company aims to bring its output up to 1,500 tons and eventually to 3,200 tons. It is also planning to increase its team from eight to 25 employees.

Aqua-Spark has more in the pipeline for 2016, the firm told Fish Farming Expert. “We hope to make five additional aquaculture investments before the end of the year. We invest all across the value chain – from feed Ingredients, to disease battling, to farming operations,” said Novogratz.

A stake in Aqua-Spark

This announcement by Aqua-Spark comes weeks after Finance in Motion, a leading global advisor in impact investing announced it had acquired an equity stake in Aqua-Spark for an undisclosed amount.

Managing more than €1.6 billion in assets across more than 20 countries, this is the first direct investment for Finance in Motion, indicating the firm’s belief in aquaculture’s role as a key sustainable food production sector for a growing global population.

“We firmly believe that our investment in Aqua-Spark will produce both positive ecological and social impacts,” said Finance in Motion Managing Director, Florian Meister in a company statement. “On the ecological side, sustainable aquaculture alleviates overfishing, reduces the need for converting rain forest to farmland, and, finally, supports the world’s supply of affordable protein. Socially, feeding billions of people will by necessity involve pulling protein from the water while having the lowest impact on natural resources.”