Project detail - Fund for Nature I L.P.

Who is our prospective customer?

CrossBoundary (“CB”) is a leading emerging markets investment manager with a strong track record of scaling impactful climate vehicles into mainstream commercial opportunities. CB is a for-profit investment firm founded in 2011 with the mission of unlocking private capital for sustainable growth and strong returns in underserved markets. The firm began as a transaction advisory platform focused on frontier and emerging markets, supporting investors and businesses in deploying capital in challenging environments. Over time, CB has evolved into a diversified investment and advisory group with specialized platforms. The firm employs 200+ staff across 20+ global offices, with the largest office in Nairobi. CB is leveraging its emerging markets expertise and natural capital advisory experience to launch a new investment vehicle dedicated to scale private sector capital into nature.

What is our funding objective?

Fund for Nature (“the fund”) is a blended finance vehicle that will invest in high impact large-scale natural capital projects in emerging markets that restore biodiverse ecosystems and transition land to long-term sustainable management. CB is aiming to work with a small group of next-generation project developers to bridge the project development gap and implement high-quality projects that align with market-leading carbon methodologies. The fund is designed to achieve ambitious and measurable positive impacts on biodiversity, community, and climate mitigation/adaptation.

Why do we want to fund this investment?

FMO intends to commit USD 10mln to the first close of the fund, with the commitment split across the senior (USD 8mln) and junior (USD 2mln) tranches. The full FMO commitment will be funded under the Mobilising Finance for Forests ("MFF") blended finance program. As an anchor investor, FMO provides strong additionality to the fund, supporting the sector’s transformation, which requires higher-risk blended finance. FMO's investment demonstrates that the fund meets the high standards set by Development Finance Institutions (DFIs) for forestry and carbon projects, providing a positive signal to prospective natural capital investors and enabling the fund to achieve a meaningful first close. FMO’s investment aims to support activities that contribute to climate mitigation, climate adaptation, and biodiversity, contributing to SDG 13, in line with the FMO’s methodology to determine the green finance attribution.

What is the Environmental and Social categorization rationale?

The investment has an Environmental and Social (E&S) Risk Category A, due to business activities with potential significant adverse environmental or social risks and/or impacts that are diverse, irreversible, or unprecedented. Based on the fund strategy and indicative pipeline, the IFC Performance Standards (PS) PS1-PS6 are expected to be applicable to all investments and PS7-8 to some, with the fund investing in certain geographies with challenging human rights and other contextual risks. Main E&S risks foreseen are issues around land acquisition and indigenous peoples, benefit sharing, (carbon) leakage, biodiversity and landscape management, measuring and monitoring project's claims and impacts, fire, flooding, security forces, Gender-Based Violence and Harassment (GBVH), and working conditions. Note that all investments will be managed in accordance with the IFC PSs, and an Environmental & Social Action Plan (ESAP) will be part of the agreement.

More investments

Date	Total FMO financing
7/1/2026	USD 8.00 MLN