This is a presentation given by Simon Dent, of investment fund Althelia Ecosphere, at Fish Night 2 on 2 March 2015. The focus of Fish Night 2, an evening of discussion and networking at the London headquarters of International Institute for Environment and Development, was looking at alternative financing mechanisms to promote sustainable fisheries. Dent's presentation on 'Impact investment in sustainable fishing projects' discussed what his sector could do to promote sustainable fisheries management. He looked at the potential of impact investments, investments that are made to generate a measurable social and environmental impact, as well as a financial return. Althelia Ecosphere currently invests in projects that reduce deforestation, mitigate climate change, protect biodiversity and provide a sustainable living to rural communities. Dent discussed the major enablers of sustainable and profitable fisheries that could form the basis for successful investment. More details: http://iied.org/FishNight2.

1. Althelia Ecosphere
Impact Investment In Sustainable
Fishing Projects
Simon Dent
March 2015
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2. Althelia and Sustainable Seascapes:
• Althelia is looking at taking its investment rationale and lessons learnt from private and
public investing in sustainable landscapes and applying it to create a ’sustainable
seascape' approach, including sustainable fisheries, waste recycling and ecosystem
services.
• Our concept is an impact investment vehicle dedicated to investment in creating,
accelerating, executing sustainable fishery projects whilst applying best-in-class social
and environmental governance.
• Investment would be along side local stakeholders (including governments, local
communities, Co-operatives and NGOs) through active participation, partnerships and
benefit sharing in each project.
• Investment capital would be at risk, financing upfront (capex) and running costs (opex) of
the projects.

3. The Oceans are incredibly important…
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Source: Global Partnership for Oceans

4. Economically valuable…
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Source: Global Partnership for Oceans

5. The Challenge:
• According to the Food and Agricultural Organization of the United Nations (FAO), "90% of
the world's fisheries are either fully exploited, over exploited, depleted, or recovering from
depletion" (FAO, SOFIA report 2014).
• Wild capture fisheries are a unique category of the food industry as the energy inputs for
producing fish are substantially subsidised by nature. It thus makes economic sense to
harvest sustainably providing the potential for fish stocks to provide resources indefinitely.
• The investment case is simple: better managed fisheries are more profitable in the longer
term than poorly managed ones. Fisheries generate significantly more value when they are
sustainably managed, while also providing biological, environmental and social benefits
• We have seen sustainable management principles work in the farming and forestry sectors
where development and private investment has been made in scale.
• Given the depleted state of global fisheries investment into sustainable fisheries
management needs to be urgently applied.
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6. Investment Opportunities
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Stock Depletion & Recovery Individual projects and species can exhibit significant stock recoveries over periods of
two to five years. Transitional investment is required to create the environment and
necessary infrastructure for stock recovery and to move to sustainable fisheries
Operational Efficiencies & Supply
Chains
Highly fragmented supply chains with low investment and poor infrastructure means
investing upstream can increase operational efficiency and bring significant added value
to the supply chain and reduce price volatility. Increasing the value of the landed catch
provides significant enhancement to project communities.
Engaging Ethical Long-Term
Retailers & Brands
International seafood retailers are increasingly requiring certification and transparency.
Engagement with ethical brands allows long term off- take agreements to be structured
and certification premium to be captured.
Multiple Revenue Streams In tandem with the fishery project, investment will also focus on multiple revenue streams
such as Aquaculture, Blue Carbon in mangrove swamps, Waste Recovery and
Recycling such as plastics and nets, investing in relevant technology such as Gear and
Equipment ( or even scrapping old equipment) and various Eco-services.
Leveraging PPP Involvement Private investment can leverage public and concessionary finance and projects can use
market based mechanisms such as political risk insurance, grants, guarantees and
pricing mechanisms
Macro Market The Global seafood market is forecast to continue to grow and prices will continue to
show an upward trend but this will be in tandem with an increasing demand for
sustainable product.

7. Investment Enablers….
1. Secure tenure aligns the incentives and empowers the fishing project to pursue sustainable use
of the resource and is a vital first step in any transition.
2. Technical data determine sustainable harvests levels and how much fish can be sustainably
taken from the fishery and enable the creation of both management and investment frameworks.
3. Investable entities to act as counterparty (eg co-operatives ) to the investment; these can be
existing, modified, or newly created entities .
4. Governance, robust monitoring and enforcement provide assurance that fishers will comply
with sustainable management and reduce the likelihood of illegal activity that could undermine
the transition.
5. Improving stock yields leads to a more abundant resource that supports higher long-term
yields and makes fish less costly to find and to catch
6. Increasing operational efficiency reduces the cost of fishing and delivering fish through the
supply chain, improving profit margins and thus improving the returns from fishing as a whole
7. Mechanisms for capturing return from the beneficiaries of the transition to share the upside of
a transitioned fishery with the investor, through revenue sharing or quotas.
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8. One Project ………
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Juveniles
MPAs
FIP – Buy Out - MSY
Supply Chain
Investment
Eco services
Sustainable
Aquaculture
Mangrove
Blue Carbon
Enforcement &
Data
Nets & Gear
TechnologyWaste
Price
Premiums

9. Take Aways
• Secure tenor and governance are key investment enablers
• Creditable data allows investment framework and investment decisions
to be made
• Leverage private public finance tools to enable investment and scale
• Project investment need to address the environmental and social issues
as an imperative to solving the drivers of depleted fisheries – thereby
improving yields, building capacity and creating investment returns
• Treat sustainable fishery projects as a whole that is greater than the
sum of its parts creating multiple revenue streams and enabling scale.
• Believe the time is right to bring private investment into sustainable
fisheries
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