Fondaction and Priori T Capital final close Inlandsis II at $130M

Ted Liu

Fondaction Asset Management Inc. and Priori-T Capital has announced the final closing of Inlandsis II, Fonds de financement de projets de réduction de GES par contrat carbone, S.E.C. with nearly $130 million in total capital commitments.

Investissement Québec joined Fondaction as a limited partner investor as part of final close.

Inlands II is one of the largest investment funds for GHG emissions reduction projects in Canada. In December 2022, Inlandsis II held a $115 million initial close.

Inlandsis II is jointly managed by Fondaction Asset Management, a subsidiary of Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi, and Priori T Capital.

Inlandsis (I) is capitalized by Fondaction and Fonds d’investissements LCC, s.e.c.

photo credit: Inlandsis

News Release

Fondaction Asset Management and Priori T Capital mobilize close to $130M for their Inlandsis II Fund dedicated to fighting climate change, and welcome Investissement Québec among their investors

Montréal, December 5, 2023 – Fondaction Asset Management, an impact manager, and Priori T Capital are delighted to announce the final closing of Inlandsis II Fund, one of the largest investment funds for GHG emissions reduction projects in Canada. The fund closed at nearly $130 million, exceeding its initial fundraising target thanks to the addition of Investissement Québec as an investor.

The announcement was made in Dubai during COP 28, the United Nations’ international climate change conference, with Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Stéphan Morency, Executive Chairman of Fondaction Asset Management’s Board of Directors, and Hubert Bolduc, President of Investissement Québec International in attendance.

“By surpassing our fundraising goal, we celebrate much more than our financial success. Our innovative carbon financing model, developed in Quebec and geared to reducing greenhouse gas emissions, is a proactive response to the climate crisis emergency. This key initiative accelerates a far-reaching, sustainable transformation of the economy,” said Stéphan Morency, Executive Chairman of Fondaction Asset Management’s Board of Directors.

“Investissement Québec is proud to back the Inlandsis II Fund as part of this final closing. By partnering with key players in the financial ecosystem, we are playing our part fully by filling gaps in the capital chain and promoting the decarbonization of our economy,” said Guy LeBlanc, President and Chief Executive Officer of Investissement Québec.

“This new investment not only strengthens our position in sustainable finance, but also underscores Quebec’s leadership in this key area. This is a testament to our shared commitment to making a positive impact, and the idea that we can influence sustainable finance together thrills me,” noted Vital Proulx, Chairman of the Board at Priori T Capital.

“We want to make Quebec the first carbon-neutral state in America, and to achieve this, we will need a significant amount of capital. With the Inlandsis II Fund, we are acquiring a new tool in our financing chain to meet our climate goals,” emphasizes Pierre Fitzgibbon, Minister of Economy, Innovation, and Energy, Minister Responsible for Regional Economic Development, and Minister Responsible for the Metropolis and the Montreal Region.”

Amplifying the impact

Having raised $115 million at first close in 2022, the Inlandsis II Fund is firmly committed to amplifying the impact of the first Inlandsis Fund by deploying its capital to regulated and voluntary carbon markets in North America, and by highlighting its efforts to preserve biodiversity and natural capital. Over the next 10 years, the Inlandsis II Fund seeks to reduce greenhouse gas emissions by 24 million metric tons of CO2e.

In addition to Investissement Québec, more than 30 investors have committed capital to the Inlandsis II Fund, including Fondaction, Priori T Capital, the Lucie and André Chagnon Foundation, Mandat privé institutionnel Sabius (Patrimoine Dalpé et Associés), the Société Financière Bourgie, HEC Montréal, Horizon Capital Holdings, Capital Benoit and Genus Capital Management.

Quebec-based expertise in carbon financing

By basing its business model on funding opportunities generated by carbon markets, Inlandsis stands out as one of the global pioneers among investment funds aimed at fighting climate change. Besides delivering competitive returns to its investors, the Inlandsis Fund takes an innovative approach, targeting various types of greenhouse gas reduction projects, including methane destruction at former mine sites and CO2 sequestration initiatives in forestry and agricultural projects.

About Inlandsis
Established in 2017, the Inlandsis Fund platform has been supported since its inception by Fondaction and Priori-T Capital, both based in Montréal. This partnership has led to the creation of a strategic alliance to ensure the success of the Inlandsis Funds. Inlandsis is the only Canadian fund platform, and one of the few worldwide, that generates returns for its investors by leveraging carbon markets to finance greenhouse gas emission reduction projects. For more information, please visit fondsinlandsis.com

About Fondaction Asset Management (FAM)
Fondaction Asset Management is an impact manager that creates and deploys innovative, high-performance financial solutions to solve major environmental and societal issues while generating competitive returns. A subsidiary of Fondaction, FAM channels capital on a large scale towards impactful sectors, thereby accelerating the profound and sustainable transformation of the economy. FAM currently manages over $480 million through its four fund platforms in areas such as energy transition, natural capital protection, environmental markets and the circular economy.
For more information, visit fondactionassetmanagement.ca

About Investissement Québec
Investissement Québec’s mission is to play an active role in Québec’s economic development by stimulating business innovation, entrepreneurship and business acquisitions, as well as growth in investment and exports. Operating in all the province’s administrative regions, the Corporation supports the creation and growth of businesses of all sizes with investments and customized financial solutions. It also assists businesses by providing consulting services and other support measures, including technological assistance available from Investissement Québec – CRIQ. In addition, through Investissement Québec International, the Corporation also prospects for talent and foreign investment and assists Québec businesses with export activities.

About Priori-T Capital
Priori-T Capital develops alternative investment solutions aimed at fighting climate change. The company builds on the experience of its managers who, since 2017, have made private investments in partnership with Fondaction in various climate change projects, such as the Inlandsis Fund platform. Today, it aims to create an ecosystem that provides investors with investment opportunities that are carbon market driven and offer entrepreneurs access to capital to build a greener economy. For more information: https://www.prioritcapital.com/home