Kakariki Land Generation Fund
Wholesale Investors Only

Kakariki Land Generation Fund

Kakariki Land Generation Fund
Kakariki Land Generation Fund
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Last Updated 01.11.2024

Invest in mispriced agricultural land which is re-optimised for carbon. (For Wholesale Investors Only)

Kakariki Land Generation Fund
Min. Investment
$150,000
Objective
Growth and Income
Structure
Managed Fund
Asset Class
Alternative Investment
Liquidity
Illiquid
Closing Date
Trustee Discretion
View More Details
Min. Investment
$150,000
Objective
Growth and Income
Structure
Managed Fund
Asset Class
Alternative Investment
Liquidity
Illiquid
Closing Date
Trustee Discretion
Industry
ESG/​Socially Responsible/​Impact, Mining, Resources & Energy, Farming, Animals & Conservation
Funding Stage
Unlisted Early-Stage Fund
Security Type
Unit in a trust
Target Capital
$100m
Availability
Open for investment

Management Fees
Class A: 1.25% of GAV /Class B: 1.50% of GAV
Performance Fees
20% above a return hurdle
Hurdle
8% p.a.
Investment Time Frame
5+ Years
Target Return
12 - 14% p.a. after fees
Term
Close Ended; 10 Yrs with early liquidity from yr 5

The Kakariki Land Generation Fund (LGF) will:

  • Invest in mispriced agricultural land which is re-optimised for carbon
  • Develop institutional carbon plantings projects across Australia
  • Target 12-14% via predictable stream of ACCUs plus co-leasing income
  • Offer leverage to rising ACCU price in a supply constrained market
  • Co-invest with developers to identify, build and operate at scale

 

Our Thesis

  1. Global supply-demand imbalance for quality carbon credits
  2. Rising premium for CO2 ‘removal’ credits such as planting trees
  3. ACCU price to surge as Australia moves to quasi-compliance
  4. Owning farmland is a stable, compounding asset class
  5. Excellent returns from accretive plantings development

 

Fund Highlights 1

 

 

1 Fund returns are net of management fees only and before tax. Fund size target includes deployed or committed capital. Early liquidity available prior to suggested investment term

The Kakariki Land Generation Fund (the Fund) provides exposure to asset backed carbon by investing in agricultural land for the development of carbon sequestration projects that generate income from premium Australian carbon credit units (ACCUs) and other environmental credits.


The Fund:

  • Invests in mispriced agricultural land which is re-optimised for carbon;
  • Partners with leading project developers to develop carbon projects;
  • Targets 12-14% via long-term stream of ACCUs and co-leasing income; and,
  • Provides cash yield and ACCU access to investors

Investors benefit from the carbon market expertise of Kakariki Capital and the origination expertise of the Land Generation management team in identifying properties with the potential for high investment return and high production yield.

 

The Fund will leverage development expertise of partners in seeking to:

  • Identify the highest potential ACCU yielding regions and parcels of land;
  • Secure the purchase of sites suitable for development;
  • Develop a portfolio of projects under a consistently high standard; and
  • Maximise project and portfolio success through ongoing land re-optimisation strategies. 

The Fund will seek to leverage Kakariki Capital’s broader carbon market expertise, capital sources and industry networks to:

  • Source private and institutional capital for the Fund or to co-invest for more tailored projects;
  • Source offtakers for ACCUs generated by the Fund’s projects;
  • Facilitate fundraising, project finance and ACCU marketing initiatives; and 
  • Source opportunities to improve project yield through other accreditation methodologies.

Highly scalable and repeatable model provides a growing annuity of carbon-linked distributions.

 

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.

 

This website may include forward-looking statements which are based on Kakariki Capital’s current opinions, expectations and projections. We do not undertake to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

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 (the hard ones!).

 

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.

Lawrence Myers

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.

The Kakariki Land Generation Fund has a minimum investment size of $150,000 and are only open to sophisticated investors (Wholesale investors as defined by the Corporations Act 2001 Cth). If you qualify as a wholesale investor and are interested in discussing an investment please contact us at info@kakarikicapital.com

November 2023
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A carbon credit represents the removal or avoidance of 1 tonne of carbon being released into the atmosphere.

An ACCU is an Australian Carbon Credit Unit, it represents represents the removal or avoidance of 1 tonne of carbon being released into the atmosphere

Carbon farming is the practice of reducing carbon emissions into the atmosphere by storing carbon (CO2e) in the landscape, specifically in vegetation and soil. There is a variety of carbon farming methods that you can integrate into your existing farming operation, such as planting trees and vegetation to store carbon in the landscape or changing property management to store carbon in your soil.

 

In Australia, carbon farming activities that comply with specific vegetation or agricultural-based methodologies are usually registered as projects under ERF. Several other international methodologies can apply to certain projects, but these FAQs apply to Emission Reduction Fund methodologies.

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