Dunas Capital, the independent real estate and asset management platform, has completed the first closing of its impact fund called Dunas Absolute Impact FCR for an amount of €10 million, which represents 20% of the fund's target size, as it expects to reach €50 million. In addition, they plan to hold a second closing during the fourth quarter of 2022.
This new fund has an investor base made up of institutional clients, including mainly insurance companies and mutual benefit societies. In addition, the Dunas Group itself has also decided to invest in the fund, reaffirming its commitment with the sustainable product.
With a 10-year duration and an expected net return of 8-10%, Dunas Absolute Impact is a product focused on generating a positive and measurable social and environmental impact in the most disadvantaged areas of Spain, through investments in sustainable agriculture, the agri-food industry and the use of renewable energies.
The team in charge of the project is Dunas Capital Asset Management, while Absolute Impact Investments acts as an advisor to the vehicle. The Absolute Impact Investments team is made up of professionals with relevant academic and professional experience in the field of investment and project management, allowing the fund to carry out actions in all of the impact investment areas covered by the vehicle.
The fund's strategy focuses on economically disadvantaged regions of Spain to invest in a comprehensive and holistic manner, focusing on job creation, especially among groups at high risk of social exclusion, and on the fight against climate change, thus collaborating with the economic and social development of the target areas.
This determination has allowed the fund to be classified by the National Securities Market Commission (CNMV) under Article 9 of the European Union's Sustainable Finance Disclosure Regulation (SFDR), as it pursues an explicit sustainable investment objective that allows Dunas Capital to invest with purpose and returns with impact. Each of the investments will be materialized through a SPE (Special Purpose Vehicle).
Impact investment strategy
The proposed objectives will be achieved through the development of the following two lines of action. Firstly, by promoting sustainability and digitization in the agriculture and processing industries, with the modernization of existing farming systems through the sensorization and digitization of the field and the creation of an agri-food processing industry that moves forward in the value chain. And, on the other hand, through the promotion of energy self-consumption both in the farms and industries of the target areas, thus increasing energy efficiency and promoting the fight against climate change.
In this regard, the fund is aligned with the conceptual and methodological framework established by the Impact Management Project and uses impact indicators based on GIIN's IRIS+ System (Global Impact Investing Network), which are verified by an independent external entity. In addition, compliance with the UN Sustainable Development Goals (SDGs) will be monitored.
David Angulo, Chairman of Dunas Capital, said: "The first closing of our impact fund at a time of maximum uncertainty demonstrates once again the need and demand for vehicles that promote positive economic, social and environmental impact. We are very proud to have incorporated the concept of financial sustainability as a determining factor within the group's investment process."
Borja Fernández-Galiano, Head of Sales at Dunas Capital, added: "Our commitment to responsible and sustainable investing is increasingly important to the firm as we are working towards more proactive strategies such as Impact Investing. From across the group we are constantly looking to expand the innovative product offering we have for our clients, making a difference and generating long-term value for investors."
The Absolute Impact Investments team stated: "We are confident that this project will have a real impact on the lives of the people in the areas where it is invested, being the first step in our goal to contribute both to the care of the environment and the eradication of poverty and inequality while generating a market return for investors."
About Dunas Capital
Dunas Capital is the leading independent asset management platform in Spain and Portugal. The group offers investment solutions through a product portfolio with a high degree of innovation and excellence. Its team of professionals with extensive experience in the financial markets (20 years on average) has worked in sectors such as banking, insurance and asset management. DUNAS CAPITAL ASSET MANAGEMENT SGIIC SAU is licensed by the National Securities Market Commission (CNMV) to carry out its activity in Spain.