Kakariki Carbon Fund 1.0
The Fund is a wholesale, open-ended Australian unit trust, that invests in high quality carbon assets and offsets. (For Wholesale Investors Only)
Kakariki Capital’s Carbon Fund 1.0 is the first fund of its kind in the Australian market that takes a long-term view of carbon credits and related assets.
The Kakariki Carbon Fund 1.0 is a wholesale, open-ended Australian unit trust, that invests in high quality carbon assets and offsets. While the fund intends to focus on nature-based projects in the international market it also invests in Australian and compliance market assets.
Our Thesis
- Carbon credits are crucial to achieving net-zero targets
- Supply shortfall expected due to exponentially growing demand to 2050
- Portfolios of high-quality carbon credits will become valuable to investors and corporates
- Markets are nascent, but will mature and few existing players are taking a long-term view
- Credits make other global challenges bankable, such as biodiversity
We are a values led organisation and a value investor.
We identify assets that are fundamentally undervalued due to the complex nature of the carbon market and look to hold assets where we see significant price upside due to supply demand dynamics in the market. A portion of our portfolio is also allocated towards arbitrage and relative value opportunities, taking advantage of dislocations between standardised instruments in the market and their underlying components.
We are strongly aligned with the d (SDGs) and believe in the need to take urgent action to address climate change and its impacts, while reducing inequality within and among countries.
Kakariki invests in high quality projects that deliver direct and meaningful benefits to local communities, and that also deliver the best returns for investors.
We aim for exposures to:
- The most reputable project developers
- The most positively impactful projects for the environment
- Projects which change the lives of stakeholders for the better
When we satisfy these exposure targets through the carbon markets, we are confident we are running the premium portfolio we aspire to.
The fund focuses mainly on investing in high quality international nature-based projects across a diverse spectrum of countries, methodologies and project managers.
The fund will either directly finance projects or support them by purchasing the carbon offsets they produce. These offsets are the instruments that companies will need to purchase to offset ‘hard to abate’ emissions as they progress to net zero.
The fund also invests in carbon compliance instruments.
A Hedge Against Rising Carbon Prices
Increasing carbon prices may pose a risk to earnings growth for many companies/shares held in investment portfolios. Adding the Kakariki Carbon Fund to a portfolio may provide an exposure to an investment with the potential to appreciate with carbon prices, potentially mitigating other related portfolio headwinds.
As an Asymmetric Portfolio Enhancement Strategy
While carbon markets have some unique risks associated with them, the potential returns should the carbon price thesis play out, may be significant. A 1-2% fund allocation can provide significant portfolio upside potential while risking only a small capital allocation.
Portfolio Diversification
An investment in the fund may provide asset class diversification in a balanced portfolio
As an Impact Investment
Investors running high impact portfolios may consider the fund’s economic, environmental, and social returns thesis to be uniquely relevant to their investment goals.
Unique risks
Carbon markets are constantly evolving and are subject to unique regulatory, political and market-based risks. Investors should carefully read the full risk disclosure in the information memorandum before investing and should have a minimum 5–7-year investment horizon.
The content displayed on this website has been prepared by Kakariki Capital Pty Limited (ABN 66 145 060 073, AFSL 365948) (Kakariki Capital, we or us).
The content displayed on this website is solely for information purposes and only for wholesale clients (as that term is defined in the Corporations Act 2001 (Cth)). It may not be passed on to or shared with, and cannot be relied upon by, anyone who is not a wholesale client. The content displayed on this website reflects our views of as at a particular time. Our views may change without notice. The content displayed on this website is for general information only and is not designed for the purpose of providing financial product or investment advice. It has been prepared without taking into account any of your personal objectives, financial situation or needs, does not purport to be comprehensive investment advice and accordingly, should not be relied on as such.
Before making any investment decision, you should consider your own objectives, financial situation and needs, read the relevant disclosure document and (if appropriate) seek professional advice from someone who is suitably qualified to give that advice.
The content of this website is not an offer to issue or sell, a recommendation or statement of opinion, or a report of either of those things intending, or that could be reasonably regarded as intending, to influence a person or persons to invest in any fund(s) managed by Kakariki Capital or any other financial product.
Investment involves risk. Neither Kakariki Capital nor any of its related bodies corporate guarantee the repayment of capital or any particular rate of return on investment in respect of any financial product. Past performance is in no way a guarantee or indication of future performance.
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At Kakariki we see investment a little differently. We are investors in a rapidly expanding sector, offering a highly attractive risk/return profile to our unit holders and, passionate investors in the future of our planet and the people who inhabit it. As an investment manager, these two objectives underlie everything we do.
Kakariki delivers superior returns to investors by providing access to the global carbon market and in turn the highest quality projects.
We leverage our unrivalled knowledge of carbon markets and deep relationships to access the best investment opportunities in what can be a confusing space. Our rigorous process targets investments that maximise financial returns as well as environmental and social impact. We know we have succeeded when these goals are integrated.
Kakariki Capital currently manage Individual Management Agreements (IMAs), the wholesale Kakariki Carbon Fund 1.0., and the Kakariki Land Generation Fund.
Izzy founded Kakariki Capital after identifying what she believes will be one of the biggest, and most important investment opportunities of our time, the decarbonisation of our planet.
Previously, Izzy spent 7 years at Morrison & Co, a leading global alternative asset manager with excess of $25bn+ FUM, where she was responsible for research and origination in carbon and environmental markets. Izzy has experience across a range of disciplines, including portfolio strategy management, and unlisted and listed investment management.
Izzy currently sits on the board of the Montessori East Foundation as Treasurer. Izzy has a Bachelor of Commerce majoring in Economics and Finance (with Distinction) from Victoria University of Wellington, New Zealand.
Lachy Ritchie grew up on the land and over the years has co-founded several purpose-driven businesses, each able to generate financial returns while benefiting the broader environment and community. Lachy is driven by the belief that adjusting the way we manage the land is the most critical pathway towards creating a healthier planet.
The core focus of Lachy’s work is supporting the uptake of land management practices that sequester carbon, build soil health, improve the water cycle, and enhance biodiversity. Lachy has worked broadly across the agriculture industry; from carbon farming, biodiversity offsetting, managing regenerative farmland, developing regenerative sourcing protocols for a food company, guiding carbon neutral certification for an oat milk product, to developing a regenerative agriculture investment strategy for an Australian Impact Investment office.
In 2018 Lachy co-founded Regen Farming News, an online news and knowledge hub that has a dedicated global audience of farmers seeking resources to help them to improve their land management practices.
In 2020 Lachy became the founding CEO of the Carbon Farming Foundation (CFF). The CFF was born from the belief that Australia (and the world) can’t get to net-zero emissions without farmers. The CFF operates nationally to help landowners to integrate profitable carbon crops into their farming operations, by providing a range of education and outreach programs, as well as carbon services. In three years the CFF has become a nationally recognised brand and go-to-source for trusted independent advice and education in the carbon farming space.
As part of this role Lachy designed Carbon Scout, An unbiased economic feasibility software tool for carbon farming. Allowing landholders to quickly assess profitability, understand the business case and identify the best pockets of land for a carbon project.
In the first three years under Lachy’s leadership, the CFF grew from an idea to an enterprise with 17 staff that had assessed 50,000 hectares of land for feasibility and had provided carbon services across 15,000+ hectares of active carbon projects. Stretching across most states of Australia and focusing on the Environmental Plantings, Plantation Forestry and Soil Carbon Australian Carbon Credit Unit (ACCU) methods.
Lill Kline is a passionate facilitator who works with individuals, families and organisations to help them align their personal values with their philanthropic, business and investment values.
Lill is the former Head of Investor Relations at Impact Investment Group which, at the time, was Australia’s largest managed impact fund; inaugural Director of the Pathways to Politics Program for Women at Melbourne University; and the former Development Director at Stand Up, a Jewish social justice organisation where she ran leadership programs for young adults.
Lill has a Bachelor of Law (Hons), Bachelor of Business (Mgmt), and a Masters of Laws (Human Rights) from Monash University. She is currently studying for her Masters of Psychology (Coaching) at the University of Sydney.
Lill is the co founder and chief impact officer at Impact Outfit and has joined Kakariki Capital as our fractional Chief Impact Officer.
Pat joined the investment team at Kakariki Capital after 5 years working across the M&A and strategy lifecycle at KPMG, Commonwealth Bank and Deloitte.
More recently, he has focused on ESG and decarbonisation as they relate to M&A and has particular expertise in linking these issues to tangible economic value. Pat's in-house and consulting strategy experience also assists Kakariki in servicing the needs of its corporate clients and in understanding the opportunities that arise from the decarbonisation challenge.
Pat has a Bachelor of Arts in Economics and History from the University of Sydney, and is currently pursuing a Master of Applied Finance at UNSW (Dist.).
Lawrence Myers is the Founder and Managing Director of MBP Advisory Pty Limited, a prominent, high-end Sydney firm of Chartered Accountants which he established in 1998. Lawrence is also the CEO of FIFO Investments Pty Limited, the family office for the Myers family and a number of associated families.
Lawrence’ specialist areas of practice include mergers and acquisitions, corporate and business advisory, tax consulting and advisory, succession planning and family office services. He is also a member of the Foundation board of the Art Gallery of New South Wales. Lawrence holds a Bachelor of Accountancy from the University of South Australia. He is a member of Chartered Accountants Australia and New Zealand, The Taxation Institute of Australia and the NTAA.
Lawrence has been a non-executive director and Chairman of the Audit and Risk Committee of ASX-listed Breville Group Limited since 2013 and its lead independent director since August 2014 and Deputy Chairman since August 2021.
Lawrence is Chairman of Kakariki Nominees Pty Limited, and a non-executive director of Kakariki Capital Pty Limited.
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A carbon credit represents the removal or avoidance of 1 tonne of carbon being released into the atmosphere.
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