Social Impact Investing

other real assets
Pico Bonito
Impact First Investor
Investor
Multiple Investors
20% projected return
Impact investment
fund
Pico Bonito, LLC
Investment in Operating Entity
> 20% expected return
deal
Bosques Pico Bonito SrL
area of impact
Sustainable Forestry
geography
Honduras
“We are moving down
the learning curve
quickly and are confident
that we can do similar
projects on a larger
scale.”
Robert Lapides
Chairman and CEO
Pico Bonito LLC
Multiple Investors
••
Pico Bonito’s investors include institutions, multilateral organisations, high net worth individuals, and foundations
Pico Bonito, LLC
••
The Pico Bonito project was founded in 2006 by the Pico Bonito National Park Foundation, an NGO based at
the project site in Honduras, and the Ecologic Development Fund, a U.S. non-profit focussing on environmental
stewardship with local community collaboration in Latin America
••
The mission of the company is to establish and manage business models that achieve triple-bottom-line results in
the areas of sustainable forestry, environmental and biodiversity restoration and protection, and social equity
••
Future plans include establishing a portfolio of 6-12 projects in multiple Central and South American markets
utilising capital in the $50-75MM range
Bosques Pico Bonito SrL (http://www.bosquespicobonito.com)
••
The main idea behind the project was to develop a sustainable business solution to the problems plaguing the
areas in and around the Pico Bonito National Park in Honduras including deforestation, endangerment of rare plant
and animal species, pollution, and rural poverty that drives further environmental destruction
••
The company raised approximately $5MM in capital and developed a for-profit model to establish and sustainably
manage native species and generate carbon offsets, while preserving the natural environment and biodiversity of
the park and engaging local communities to enable them to share in the benefits achieved by the project
••
The company operates in and around the buffer zone of the national park by acquiring threatened or already damaged
and deforested land areas and establishing sustainable forestry practices
••
To establish sustainable land management practices and create short term food supplies and cash crops for the
local communities, the company initiated agro forestry activities which yield such crops such as coffee, corn
and beans
Impact
social/environmental impact
••
The company has already planted 500K trees and aims to plant
another 500K
••
It employs over 150 people from the local communities around the park
••
The company was one of the first to have its tropical forestry carbon
sequestration methodology approved by the United Nations Clean Development
Mechanism which has generated significant carbon offsets
••
Local farmers have been trained in agro-forestry techniques, soil conservation
and pest management
••
The project has also gone a long way in protecting the water supply for
the region around the park
financial impact
••
The project has an overall expected IRR of 20% which is
significantly above the risk-adjusted market rate for the
timber sector
••
Revenue streams include carbon offsets and sales from sustainable
forestry including timber, cherry, mahogany,
and rosewood
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Investing for Impact: Case Studies Across Asset Classes