9 May 2024, London. – Ocean 14 Capital Fund I, focusing exclusively on the multi-trillion-dollar ‘blue economy’, has announced it has closed on €201 million to support its mission of funding sustainable solutions to improve ocean health.

The Ocean 14 Capital Fund is focused on driving a sustainable and regenerative “blue economy” – a sector that uses ocean resources for economic growth and preservation. Following the closing at the end of March, the impact fund has added a host of large institutional investors to its already high-profile list.

The world’s largest food and beverage company Nestlé, HQ Capital and The Green Earth Impact Fund managed by Schroders and BlueOrchard have recently invested in the fund, positioning it as the largest in the blue economy.

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

The Fund aims to act as a tidal surge to supercharge the blue economy, which is expected to be worth $3 trillion by 2030, according to the OECD. At the same time, it will provide jobs to 40 million people (OECD;pg2).

“The world’s oceans have suffered from overfishing, pollution, and climate change, resulting in the dramatic loss of marine habitats. 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,” said Dan Smith, Head of Nestlé Purina’s Global Business Unit.

“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. 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,” said Natalie Wong, Investment Director, Schroders Capital and Daniel Freedman, Senior Portfolio Manager, BlueOrchard.

“Oceans are the critical life-support system for life on earth. 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,” said Chris Gorell Barnes, co-founder of Ocean 14 Capital Limited.

“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. 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,” added Gorell Barnes.

“The fundraising for the Ocean 14 Capital Fund has been a tremendous success, we are grateful for the support of all our investors especially in this current fundraising environment, with the ongoing succession of macro and geopolitical challenges. We are proud of our diverse LP base and appreciative of their conviction in our team and strategy and their trust in us,” added Sheila Gungadin, Head of Investor Relations at Ocean 14 Capital.

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About Ocean 14 Capital Fund I SCSp

Ocean 14 Capital Fund I SCSp (“Ocean 14 Capital Fund” or the “Fund”) is an impact fund now targeting €200 million and focused on driving a sustainable and regenerative blue economy. The fund’s investment adviser, Ocean 14 Capital Ltd, has a team who combine more than 65 years of investment, impact, and industry experience. The investment adviser’s team and advisers are considered to be some of the world’s most renowned scientists and marine biologists, and it is considered that they have unparalleled access to proprietary deal flow and sector knowledge. www.ocean14capital.com

For further information, please contact:

Tara O’Driscoll, CEO, The Prophets – tara@theprophets.co.uk: +44 7791 091 909

The WHY is obvious. Oceans cover more than 70% of the planet, produce at least 50% of the oxygen and absorb at least 25% of the atmospheric CO₂. The WHAT can be seen by looking at the SDGs and how they are linked to Life Below Water. SDG14 touches almost every other SDG, which we believe means investing in a sustainable regenerative ocean ecosystem is a triple win for people, planet, and economy.

GOAL 1: No Poverty: More than three billion people rely on the ocean for their livelihoods, the vast majority in developing countries, according to OECD. Investing in sustainable aquaculture, for example, can make a significant socioeconomic contribution in coastal and rural communities.

GOAL 2: Zero Hunger: More than 3.3 billion people around the world get at least 20% of their daily animal protein intake from fish, according to FAO. Better management of global fisheries could produce 16 million tonnes more seafood annually, according to State of World Fisheries and Aquaculture. This is why the Ocean 14 Capital Fund invested in SyAqua, Tilabras and MITO.

GOAL 3: Good Health and Well-being: Prochlorococcus and other ocean phytoplankton are responsible for 70% of Earth’s oxygen production, according to National Geographic.

GOAL 5: Gender Equality: Globally, women occupy only 20% of the workforce in fishing and aquaculture and additionally they tend to hold lower paid jobs in the fishing industry, according to OECD.

GOAL 6: Clean Water and Sanitation: Some 80% of pollution, including plastics, fertiliser and pesticides, to the marine environment comes from the land, according to NOAA.

GOAL 7: Affordable and Clean Energy: Marine energy – also referred to as ocean energy, ocean power and marine hydrokinetic energy – is power generated from ocean waves, currents, tides, and temperature changes. The global ocean energy market is predicted to be worth $4.8 billion by 2030.

GOAL 8: Decent Work and Economic Growth: The value of the ocean’s asset base is $24 trillion, while the annual value of goods and services produced from ocean-related economic activities is $2.5 trillion and it is estimated that by 2030, 40 million people will be employed in ocean-based industries, according to a 2015 WWF report.

GOAL 9: Industry, Innovation and Infrastructure: Ocean innovation in science and technology will be key to driving the investment required to support a thriving blue economy. One of the fund’s investments, AION, a spinoff of AkerBioMarine focused on plastic circularity and circular technology, has just signed a memorandum of understanding with Microsoft to explore opportunities for joint innovation and co-selling related to digital traceability of circular plastic products.

GOAL 11: Sustainable Cities and Communities: Sea levels could rise by 40 to 63 centimetres by 2100 according to IPCC and this will impact coastal cities. According to projections, 70% of the people that will be affected by rising sea levels are located in just eight Asian countries: China, Bangladesh, India, Vietnam, Indonesia, Thailand, the Philippines, and Japan with 360 million people affected.

GOAL 12: Responsible Consumption and Production: Plastic waste (at least 14 million tons of plastic end up in the ocean every year); overfishing (Nearly 80% of the world’s fisheries that are already fully exploited, over-exploited, depleted, or in a state of collapse); and chemical pollution are all areas where ocean innovation can help.

GOAL 13: Climate Action: “The climate crisis and the ocean are inextricably linked, and even one and the same. You cannot solve the problem of the climate crisis without solving the problem of the ocean” to quote John Kerry, the US Special Presidential Envoy for Climate.

The Earth’s oceans are carbon sinks absorbing 31% of excess carbon and more than 90% of the excess heat we produce. This excess heat is responsible for warming, increased moisture and increased intensity in winds and storms; it is also behind the increased level of flooding that is occurring globally, so as we wrote here, it is time to join the climate-ocean dots.

GOAL 15: Life on Land: Biodiversity both on land and marine life is at risk due to pollution, global warming, and human impact on ecosystems. Biodiversity is the basis for, among many things, food, water, oxygen, carbon dioxide removal, medicine; a stable climate and economic growth and according to the World Economic Forum’s Global Risk Report 2022, biodiversity loss has been ranked as the third most severe threat humanity will face in the next 10 years.

We have recently had two major steps forward: COP 15’s adoption of the Kunming-Montreal Global Biodiversity Framework (‘30×30’) to ensure that 30%of areas of degraded terrestrial, inland water, and coastal and marine ecosystems are under effective restoration by 2030 and the landmark Biodiversity Beyond National Jurisdiction Treaty of the High Seas allowing 30% of oceans to be protected.

If we look hard links to all the SDGs and oceans can be found, but just these 12 shows how important the ocean is to all aspects of life on this planet. So the WHERE is everywhere. The ocean may cover more than 70% of the earth’s surface, but its edges touch land through mangroves, fishing, and as we mentioned coastal communities.

The HOW of investing in the blue economy is something we will touch more on in our upcoming blog on ocean natural capital, but blue bonds and ocean-themed investment funds are both starting to take hold, and with more than 80% of the world’s carbon is circulating through the ocean, blue carbon credits, as we wrote here, is certainly a viable possibility.

And finally the WHEN is NOW. Since we started, the first close of Ocean 14 Capital Fund saw investors such as European Investment Fund, Chr. Augustinus Fabrikker, Builders Initiative and Minderoo Foundation join us on the journey. Since then, we have also partnered with Constitutional Reserve Fund of Monaco and Ingka Investments, the investment arm of Ingka Group which represents the largest IKEA retailer.

We are at the tipping point of being able to limit global warming, and we need to achieve carbon emissions reduction at scale and speed, not to mention set in place biodiversity safeguards through sustainable and regenerative aquaculture practises.

This is the year to join the dots and put the ocean centre-stage for a just and equitable transition to net zero, and provide the environment for biodiversity the source of our livelihoods to thrive. Let’s not forget: no ocean, no us!

Image: Art by Louis Masai (Photo Credit: Niki Natarajan)

Ingka Investments is the investment arm of Ingka Group which represents the largest IKEA retailer, to support its mission of funding sustainable solutions to improve ocean health.

It marks the first time Ingka Investments has invested in the ‘blue economy’ – a sector using ocean resources for economic growth and preservation.

Following the Principality of Monaco’s €10 million commitment from the sovereign wealth fund in September 2022, Ocean 14 Capital has now raised €130 million since launching its growth-stage impact fund in November 2021.

With this backing, the purpose-led €150 million impact fund believes it is well on track to grow its portfolio to between 20-25 businesses within three years, having invested in four companies to date.

Ocean action was a major talking point at the World Economic Forum Annual Meeting 2023 held in January in Davos, Switzerland.

A dedicated session on Ocean 20: Building a Sustainable Blue Economy featured Peter Thomson, the UN Secretary-General’s Special Envoy for the Ocean and Co-Chair of the World Economic Forum’s community of ocean leaders, Friends of Ocean Action, flag that a sustainable blue economy represents no less than “the future of human security” and is critical for intergenerational justice – as he urged leaders to seize the critical opportunities for Ocean Action in 2023.

Using the United Nations Sustainable Development Goal number 14: Life Below Water as a guiding principle, Ocean 14 Capital is searching for entrepreneurs and businesses with big ideas around aquaculture and alternative proteins, reducing plastic waste pollution, protecting ecosystems and marine flora, and ending overfishing.

The fund’s mission is to supercharge the blue economy, which is expected to be worth $3 trillion by 2030, according to the OECD. At the same time, it will provide jobs to 40 million people (OECD;pg2).

Chris Gorell Barnes, co-founder of Ocean 14 Capital, said:

“It is a real testament to the quality of our fund and intention that Ingka Investments has come on board in such a significant capacity. “If there’s no ocean, there’s no us – it connects us all. It provides food security and plays a vital role in achieving the UN sustainability agenda. “Davos 2023 radically shifted the dial on the conversation this year. There is a powerful undercurrent of momentum emerging as people are increasingly waking up to the fact that ocean’s health is the engine to economic growth – and critical to national and global development. “Is this the most important investment thesis of our time? We fervently believe yes. Without a healthy marine eco-system there is zero chance of humanity surviving. “I’d like to think we are at the tipping point of where the blue economy becomes mainstream. In less than two years we have backed four ground-breaking growth-stage companies, doing extraordinary work. So for Ingka Investments to recognize this just spurs us on further. “Tackling climate change and food security is vital for retailers – ocean health has a direct positive impact for consumers and commerce”.

Ingka Investments, one of the three core businesses of Ingka Group, the largest owner and operator of IKEA Retail.

Head of Financial Market Investments at Ingka Investments, Samuel Rundle said:

“Ingka Group is guided by the IKEA vision to create a better everyday life for the many. As a purpose-led company, we aim to invest with impact, delivering positive returns for communities and the environment for generations to come. Ocean health is critical to a cleaner and more inclusive recovery. We were very impressed with the strategy of the Ocean 14 team and are excited to support the acceleration of sustainable solutions to improve our oceans.”

First launched in November of 2021, the Ocean 14 Capital fund will focus primarily on investing in growth-stage businesses. It is aiming that around two thirds of the fund will go to companies based in Europe, with the remainder aimed to be used to invest in the rest of the world.

The Ocean 14 Capital Fund completed an €80 million first close in November 2021, with backers including the European Investment Fund (EIF), Chr. Augustinus Fabrikker, Builders Vision, Minderoo Foundation, British businessman Alex Beard and Swedish entrepreneur Niklas Zennström.

The European Investment Fund (EIF), Chr. Augustinus Fabrikker, Builders Initiative and Minderoo Foundation have approved commitments to become cornerstone investors in Ocean 14 Capital’s inaugural fund, the first large investment fund to focus exclusively on the blue economy.

EIF has approved a commitment of €35 million to the fund, while Chr. Augustinus Fabrikker is allocating €15 million. Builders Initiative and Minderoo Foundation will commit €10 million together, bringing the total to €60 million.

The fund is a unique combination of marine industry and nature conservation knowledge that comes from Ocean 14 Capital, a private equity firm focused on the United Nations’ Sustainable Development Goal 14 (SDG14), which aims to conserve and sustainably use the oceans, seas and marine resources for sustainable development.

The Ocean 14 Capital Fund will target investments in growth-stage technologies and companies promoting sustainable fishing, aquaculture and alternative proteins as well as ocean conservation and health including marine flora and plastic waste solutions.

The EIF investment is guaranteed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. It also falls under BlueInvest, a European Commission initiative created in 2020 and supported by the EIF.

BlueInvest is an endorsement of the importance of the global blue economy, which according to OECD predictions will grow from $1.5 trillion in 2016 to $3 trillion by 2030 and will provide 200 million jobs.

To read the full Press Release, click here.

What’s happening? A coastal and ocean industries sustainability plan which calls for blue economy sectors to work in partnership to combat climate change has been launched by the European Commission. The EU’s blue economy has a turnover of over €650bn ($794bn) and supports almost five million direct jobs. The Commission’s plan outlines measures for the blue economy to become more circular and less polluting, with the overall aim to support the EU’s attempts to achieve carbon neutrality by 2050.

Why does this matter? The Commission’s proposed plan is attempting to simultaneously protect marine habitats and biodiversity while improving the sustainability of marine-related industries, both of which will play a key role in mitigating climate change.

The plan targets sectors including aquaculture, maritime transport, coastal tourism and shipbuilding, and will support the objectives of the European Green Deal and the EU’s 2050 Zero Pollution Action Plan. The development of offshore renewables such as floating wind and tidal energy, for instance, support the EU’s 2050 target of reaching 300 GW of installed offshore energy. The role of ports will also be explored, with plans to develop them into green “energy hubs” for cleaner power including hydrogen and other low-carbon fuels supporting the decarbonisation of maritime transport.

Measures to shift blue economy sectors to a more circular mode of operation will also be promoted, which includes developing renewed standards for fishing gear to target ocean pollution, and ship recycling. The sustainability of seafood production is to be targeted through new standards, in addition to funding research in innovative food sources such as algae and cell-based seafood.

The agenda includes aims to protect 30% of the EU’s sea area to reduce biodiversity loss and increase fish stocks, through the establishment of marine protected areas to better protect nature and also coastlines from erosion and flooding. The Commission also points to the climate mitigation benefits of such action. Alongside the obvious reasons for protecting biodiversity, the role of large fish species such as tuna and sharks as carbon stores should be recognised as another incentive for conservation – particularly given the fact that Europe’s waters and coastal environments are home to nearly 50,000 species.

Advancing efforts to preserve biodiversity, alongside the growing size of offshore renewables projects, may result in tensions due to pressures on the amount of available space in the ocean. As such, the EU will establish a “Blue Forum” to facilitate discussions between different sea users to enable cooperative, sustainable use of the ocean. One solution already being explored is multi-use offshore projects that combine offshore infrastructure with biodiversity initiatives, such as Van Oord’s deployment of reef structures at the Borssele offshore wind farm to boost the North Sea’s oyster population.

To facilitate all this the European Investment Bank Group, which comprises the European Investment Bank and the European Investment Fund, will work with member states to support blue innovation and blue bioeconomy initiatives. The Commission is also encouraging private investments to follow ocean sustainability standards such as the EU-sponsored Sustainable Blue Economy Finance Initiative.

On a larger scale, the establishment of strategies aiming to improve the sustainability of marine habitats and related sectors is gaining traction. Last year, the leaders of 14 countries joined the world’s biggest ocean sustainability initiative, pledging to eliminate overfishing, restore shrinking fish populations and end the movement of plastic pollution into the sea over the next decade. Australia recently announced AUD100m ($77.4m) in ocean protection funding, which will go toward the restoration of habitats and industries including fisheries.

Source: www.euractiv.com