Global investment firm Cambridge Associates is one of the investors in the new fund, which is focused on making the seafood value chain less wasteful.
Norway-based Bluefront Equity has raised $50m (€47m) for its second impact fund focused on sustainable seafood investments.
It is targeting around $125m in fundraising for its fund, which will invest in companies that contribute to a greener seafood value chain, including software, improved fish welfare, and improved ocean health.
“Thirty-five percent of global emissions come from the food value chain,” Simen Landmark, a partner at Bluefront Equity, told Impact Investor. “From the current day until 2050, the world population is estimated to grow by 60%, so this is a lasting challenge: to reduce the emissions from the food value chain.”
Landmark, a former investment banker in Norway who co-founded Bluefront Equity with Kjetil Haga in 2020, said there needs to be a shift from high-emission proteins to low-emission proteins. “For example, if you change from red meat to red fish, you have a 70% reduction in emissions. That’s what we call food transition.”
New investment
Cambridge Associates, the global investment firm, joined the second fund as an investor following an extensive due diligence of close to nine months, Landmark said.
“They were searching for a company that gave them exposure on impact and on seafood, and that led them to us,” he added. Cambridge Associates looked at the financial, legal and operational side of Bluefront, according to Landmark. They also checked out at the firm’s cybersecurity and held calls with 25 different referees.
“It was a really good and thorough due diligence process, and it also really helped us improve,” said Landmark.
Existing investors in its first fund – including Havfonn, the Steensland group, 3S Invest, Klaveness Marine, TD Veen, Cubera and more – also joined Bluefront Capital II.
First fund
Bluefront Capital I, the firm’s first seafood impact fund, had raised a total of $70m. It is the majority owner in a number of fast-growing companies, including fish welfare specialist Bio Marine and ocean health monitoring specialist Seaqloud.
Bluefront Equity typically jointly owns and develops the companies it invests in, in collaboration with company founders and current shareholders.
Its second seafood fund is aiming to make its first acquisition by the summer, according to Landmark.
The firm targets portfolio companies that are profitable, with a history of five years or more, he said. The underlying companies also have to contribute to solving one of the challenges that the industry faces, including fish welfare, reducing the ocean footprint, digitalisation and traceability.
“The fish farming industry needs to further improve biological conditions and fish welfare and reduce its climate footprint,” said Haga, who in addition to being co-founder is also a partner at Bluefront Equity. “Our portfolio companies contribute towards solving many of the challenges the industry face,” he said.
