An important milestone for ADM Capital’s first impact fund devoted to climate-smart land-use finance in Indonesia was reached on Wednesday when ADM Capital announced the final closing of the ADM Capital Asia Climate-smart Landscapes Fund LP (ACLF) at $48 million.
ACLF is a blended finance private lending entity that supports sustainable land-use systems, forestry, aquaculture, and agriculture throughout Indonesia, according to a statement from ADM Capital.
The fund helps businesses develop climate-smart practices, improve rural livelihoods, and promote more resilient food systems by offering long-term credit to underbanked small and medium-sized firms operating throughout agricultural supply chains.
ACLF raised money from a wide range of sources, including family offices, foundations, development finance partners, and institutional investors.
The Australian Government’s Australian Development Investments (ADI) fund through Sarona Asset Management contributed $8 million to the final close, which was matched by $8.65 million from Australian foundations and family offices, such as the Paul Ramsay Foundation, the Minderoo Foundation, and the LEEAF Trust.
The Australian investors made a joint investment through Ecotone Partners-managed ADI Climate Partners.
The Australian investment, which supports small and medium-sized businesses in industries like agriculture, agroforestry, and aquaculture, is a historic public-philanthropic collaboration to raise money for Indonesia’s green transition.
The collaboration shows how blended finance can unlock investment into high-impact opportunities throughout the Indo-Pacific by allowing Australian government and philanthropic funding to invest alongside each other.
The U.S. International Development Finance Corporation (DFC) provides ACLF with a 50% asset-level guarantee, which aids in the mobilization of private capital into industries and regions that are still underserved by conventional financing markets.
The impact goals of the fund are also included into its structure, with carried interest connected to specific social and environmental performance goals.
“ACLF’s successful close marks an important milestone. We established the Fund to demonstrate that private capital can play a much larger role in financing the transition to sustainable agriculture and forestry, while delivering measurable benefits for climate, nature and rural livelihoods,” said Chris Botsford, Founder of ADM Capital.
The involvement of ADI and its partner investors reflect growing confidence that blended finance can unlock investment into historically underserved sectors and geographies, mobilizing private capital where it is most needed, according to Lisa Genasci, Managing Director, Sustainable Finance at ADM Capital.
