May 16, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Ocean 14 Capital Fund I was created to act as a tidal surge to supercharge the blue economy – an investment channel using ocean resources for economic growth and preservation that is forecast to have a value of $3 trillion by 2030, according to the Organization for Economic Cooperation and Development (OECD).

Reflective of how important this goal is, the fund announced that it has closed at its hard cap with €201 million (US$218.45 million) in capital commitments from backers that include some of the world’s largest food and beverage companies including HQ Capital and Nestlé through its Sustainability Fund.

The Green Earth Impact Fund managed by Schroders and BlueOrchard has also recently invested in the fund, positioning it as the largest in the blue economy.

“We are thrilled to be investors in the Ocean 14 Fund I which marks a key milestone as The Green Earth Impact Fund’s first dedicated investment in the Blue Economy,” said Natalie Wong, investment director with Schroders Capital, and Daniel Freedman, senior portfolio manager at BlueOrchard.

“Green Earth Impact Fund, which is jointly managed by BlueOrchard and Schroders, aims to create broad based climate impact in areas including ocean and land-based preservation and restoration. We believe this investment has great potential to deliver on our impact goals while also generating attractive financial returns.”

Using the United Nations Sustainable Development Goal 14: Life Below Water as a guiding principle, Ocean 14 Capital Fund invests in entrepreneurs and businesses with big and innovative ideas affecting aquaculture and alternative proteins, reducing plastic waste pollution, protecting ecosystems and marine flora, and ending overfishing. 

By 2030, the blue economy is expected to grow at double the rate of the rest of the economy, reaching a value of $3 trillion by 2030, according to the OECD, however, the extractive nature of our relationship with the world’s oceans and its wildlife continues to lessen marine biodiversity and negatively impact habitats. Additionally, only a fraction of the current marine enterprises in operation are working to reduce these outcomes.

Growth in global demand for seafood has increased at 3.2 percent per year since 1960, outpacing the 1 percent annual growth in global population, according to Philippe de Lapérouse, co-head and managing director with HighQuest Consulting. Over the same time period, per capita consumption of seafood has more than doubled from 10 kilograms (22 pounds) per person to more than 20 kilograms (44 pounds) per person today – an unsustainable dynamic that is creating a scenario that will see global fisheries collapse before 2050, according to Good Catch.

“The world’s oceans have suffered from overfishing, pollution, and climate change, resulting in the dramatic loss of marine habitats,”  said Dan Smith, head of Nestlé Purina’s global business unit.

“That’s why we are delighted to collaborate with the Ocean 14 Capital Fund I, a visionary partner that is at the forefront of exploring this field. Together, we aim to drive innovation and create positive change by preserving and harnessing the power of the ocean’s resources to ensure a more sustainable future. We recognise the potential within the blue economy and are dedicated to seizing the opportunities it presents.”

In August 2023, the Ocean 14 Capital Fund I announced it had exceeded its initial target of €150 million, leading to a new hard cap being set at €200 million. At that time, the fund had already made five investments: a €10 million investment in Brazilian tilapia producer Tilabras; an €11 million investment in Dutch yellowtail producer The Kingfish Company; other investments in shrimp breeding technology specialist SyAqua and plastics management platform AION; and a €10 million commitment to Norway’s Ava Ocean, a technology and seafood company with a mission to protect fragile ocean habitats and critical carbon sinks by reimagining the way seafood is harvested from the seabed.

“Oceans are the critical life-support system for life on earth,” said Chris Gorell Barnes, co-founder, Ocean 14 Capital Limited. “The ocean provides half the oxygen we breathe, it absorbs half the carbon, it feeds the world, it employs hundreds of millions of people. If it’s not functioning it will be game over for humanity. Institutions are now awakening to the fact that we need to overhaul the capital market to stand a chance of averting the climate crisis.”

“That is why the Ocean 14 Capital Fund was launched, to bring in the necessary capital to transform the blue economy and make it sustainable and regenerative, to protect and restore the oceans health and make sure this vital economy can prosper,” continued Gorell Barnes. 

“It’s a huge testament to the team and their strategy that in this environment, they have obtained investment from like-minded investors who share the desire to make a difference – to help preserve a flourishing ocean, maintain precious marine ecosystems, and protect global food security across the globe. Looking forward, the most sustainable businesses will be the most valuable so this is an exciting investment opportunity encapsulating innovation and technology to create truly transformational businesses.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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