Norway-based seafood investment firm Bluefront Equity recently secured a new investment from Builders Vision – an impact platform founded by Lukas Walton – that shows the appeal of the firm to impact investors targeting the blue economy, according to Bluefront CIO and Founding Partner Simen Landmark.
Builders Vision’s investment for an undisclosed amount will support the firm’s second fund, Bluefront Capital II. Builders Vision is also working with Bluefront to form an Impact Advisory Council (IAC), a strategic initiative aimed at enhancing the firm's impact management and measurement (IMM) efforts.
“We have been in dialogue with Builders Vision for many years. We are very proud and humbled to get Builders Vision as investor. They help us with both network and knowledge,” Landmark said.
Landmark told SeafoodSource Bluefront is the only fund targeting the ocean space with a traditional buyout strategy, which has helped drive interest from many investors seeking exposure to this very important area. Bluefront’s investments center on improving ocean health, promoting fish welfare, and enhancing resource efficiency. Its first fund, Bluefront Capital I, closed at USD 62 million (EUR 60.4 million) in 2021.
Bluefront Capital II has already exceeded that amount and is continuing to fundraise until this summer. Most of the investors in the first fund have also invested in Bluefront Capital II, according to Landmark. Among these are Norway-based Havfonn (Bergersen family), Steensland Group, 3S Invest, Klaveness Marine, and TD Veen. Nordic private equity firm Cubera has also put money into the fund, as has U.S.-based asset management firm Commonfund.
Capital II maintains a similar investment mandate as the first fund by focusing on companies delivering products, services, and technologies that contribute to a more sustainable seafood value chain, Landmark said.
“In general, we search for a market-leading position in fast-growing and attractive niches with global potential,” Landmark said. “Since the launch of the first fund, several new low-emission production methods with significantly more investments per [kilogram] produced have gained traction. Rising ocean temperatures are an important ‘motivator’ for investments in new production forms. This results in sudden oxygen drops, sea lice attacks, and other predators entering new waters.”
Landmark said Bluefront experienced “great traction” in the ventures the first fund invested in and that the average growth in the portfolio last year was around 25 percent.
Landmark also said the portfolio addresses a number of key sustainability issues impacting the aquaculture industry’s ability to scale up, such as lack of oxygen competence, ocean health monitoring, certifications to prevent escapes, AI solutions to prevent overfeeding, temperature control using low/no-emission technology, and biosecurity solutions.
Landmark said Bluefront learned many lessons from its first fund ...