SLM Partners, a real assets manager firm specializing in regenerative agriculture and sustainable forestry, has successfully closed its first European agriculture fund, the SLM Silva Europe Fund, at US$ 32 million (€30 million). This milestone marks the firm’s expansion into European agriculture, with a strong focus on sustainable and regenerative farming practices. The fund, which initially targeted US$ 259 million (€250 million), has already deployed over US$ 22.8 million (€22 million) into orchard investments across Spain and Portugal.
Investment Focus on Permanent Crops
The fund has concentrated its investments on permanent crops, including almonds, walnuts, pistachios, and olives, spread across diverse microclimates in the Iberian Peninsula. This strategic approach follows feedback from investors who expressed a preference for a dedicated forestry vehicle or a focused agricultural investment. In response, SLM Partners refined its strategy to build a diversified portfolio exclusively within the agriculture sector.
SLM Partners has structured its investments to align profitability with environmental impact. The company aims to scale up regenerative land management, working alongside experienced operators who are integrated within their value chains and committed to adopting sustainable practices.
SLM Partners’ Commitment to Environmental Impact
SLM Silva Europe Fund has set ambitious impact targets related to carbon sequestration and biodiversity conservation. The portfolio aims to convert at least 50% of its properties to organic certification while ensuring that the assets become net positive for carbon—sequestering more carbon in trees and soil than is emitted through operations. The investment team has linked its carried interest to achieving these environmental key performance indicators (KPIs), underscoring its commitment to sustainability.
Paul McMahon, co-founder of SLM Partners, highlighted the potential of regenerative agriculture to deliver both environmental and financial returns.
“There are better ways to practice agriculture than conventional ones, and we seek out operators that are ready to put these into practice. They’re proving that regenerative agriculture works, that it delivers environmental outcomes, and that it’s profitable. We’re in the business of developing investment strategies to accelerate this change.”
Investor Interest and Final Close
The fund has attracted a range of impact investors, particularly fund-of-funds and family offices seeking opportunities that combine real asset returns with meaningful environmental impact. Among the latest investors to join at the time of the final close was the Wire Thrive Fund, a Dutch fund-of-funds recognized for its role in impact investing.
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Ronald Janse, Chief Conscious Capital at Wire Group, emphasized the alignment between Wire Thrive Fund’s objectives and SLM Silva Europe Fund’s strategy.
“This investment marks the first real asset investment from Wire Group’s second fund-of-funds, the Wire Thrive Fund, and builds on its role as a global impact investor in the regenerative space. Wire Group’s commitment will allow SLM to invest into an additional asset on the Iberian Peninsula in line with their strategy of bringing regenerative farming with its benefits for both human and environmental health to the mainstream.”
A Strategic Step into European Agriculture
Although this is SLM Partners’ second European fund, it is the first specifically focused on agriculture. The firm, known for its work in natural capital investing, has leveraged its expertise to develop investment strategies that promote regenerative agriculture. With a targeted net internal rate of return (IRR) of 9%, SLM Silva Europe Fund seeks to balance financial performance with sustainable land management. The firm’s entry into European agriculture reflects a growing interest in regenerative farming as a viable investment model that delivers long-term environmental and economic benefits.
By closing this fund and securing investment commitments, SLM Partners has reinforced its role in sustainable agriculture, demonstrating that environmentally responsible farming practices can be integrated into profitable investment strategies.