Kilara Capital announces the successful close of a major new deal with industry-leading carbon farmer, Climate Friendly
Climate Friendly is once again Australian-owned after the successful completion of a management buyout of its former majority shareholder, South Pole Holding, led by investment manager Kilara Capital, with the backing of a number of Kilara’s private clients.
Climate Friendly’s vision is for a productive, sustainable land sector that contributes to a zero net emission Australia by 2050. Its goal is to reduce Australia’s greenhouse gas emissions by 20 million tonnes by 2020, scaling up to 100 million tonnes by 2025. Climate Friendly works by supporting Australian farmers, foresters and traditional custodians to reduce their greenhouse gas emissions and regenerate the landscape through carbon farming whereby farmers either remove carbon from the atmosphere and store it in their land, or prevent greenhouse gases from entering the atmosphere. By changing their land management methods, farmers receive carbon credits, which can be sold to generate income.
Ben Krasnostein, Kilara Capital’s Co-Founder and Managing Director commented “We structured the deal in a way that was fundamentally supportive of Climate Friendly’s vital work in tackling the climate challenge. We therefore brought in investors that endorsed this mission, while balancing the clear need for financial returns. This is what drives our approach at Kilara – creating investable opportunities, that are consistent with the need to transition to a low carbon economy”.
Freddy Sharpe, CEO of Climate Friendly commented “We were delighted to partner with Kilara Capital because of their impact investment philosophy and their focus on sustainable land management. Kilara’s strategic analysis of the carbon market and of Climate Friendly’s business, their access to informed and sophisticated private clients, and their innovation, flexibility and support in structuring transactions, were key to the success of our management buyout.”
Founded in 2017 Kilara was created to champion the transition to a sustainable, low-carbon future with a particular focus on land regeneration and management, and sustainable food production. Kilara’s founders – Ben Krasnostein and Andy Cosh – bring to the business decades of experience in agriculture, impact investment and moreover a long-term perspective that comes from the management of intergenerational family wealth. The need to balance financial returns with a sustainable future is at the core of Kilara’s investment philosophy.