BOARDROOM
Community Solutions closes $135mn to create affordable housing in the US
The CS Large Cities Housing Fund uses private equity to create housing for those on middle incomes and people transitioning out of homelessness. Since its launch in 2022, the fund has acquired more than 1,000 homes in six cities, with the aim of reaching 2,500 housing units. Half of these will be for people exiting homelessness, including veterans, and half will be affordable housing. The fund uses private capital to build housing stock quickly and at a relatively low cost, while aiming for a responsible return on investment. The housing will be transferred to nonprofit ownership once investors’ capital is returned.
Azerbaijan seeks $1bn from fossil fuel producers
The $1bn Climate Finance Action Fund will take contributions from fossil-fuel-producing countries and companies to invest in climate change mitigation and resilience projects. Funds will be available to “any developing country,” but contributions will be voluntary. While the need for greater funding to fight climate change and its impacts in the Global South is well-acknowledged, campaigners argue that the fund must not distract from a full fossil fuel phase-out. The announcement comes as news broke last week that ALTÉRRA, the UAE-backed $30bn fund that was launched at COP28, channeled capital towards a BlackRock fund that recently acquired a major fossil gas pipeline in North America together with Morgan Stanley. Laurie van der Burg of Oil Change International said, “Altérra is a deceitful greenwashing distraction making money off fossil fuel investments and calling it climate action. Any fund that invests in oil and gas expansion or that gives Big Oil decision-making powers is not a climate fund. The same goes for Azerbaijan’s recently announced Climate Finance Action Fund.”
Novocuff raises $26mn to reduce risk of premature births
California-based Novocuff has raised $26mn in a round led by AXA IM Alts, the alternative business arm of the investment and insurance giant. The funding will be used to conduct a clinical trial of a CCS (Cervical Control System) device designed to avoid premature birth by closing the cervix to retain amniotic fluid and cervical length. Premature birth is currently the leading cause of death for children under five and has an economic impact of $25bn per year, through the cost of hospital stays and long-term health issues. Trials will begin in the US in 2025, with the ultimate aim of making the technology commercially available.
NoPalm closes €5mn in investment for palm oil alternative
Dutch biotech pioneer NoPalm Ingredients has raised $5mn in a round led by Rubio Impact Ventures for its yeast-based replacements for traditional fats and oils. NoPalm claims to have proven the quality of its product in pilot testing, with a 90% reduction in CO2 and a 99% reduction in land use compared to palm oils. Production of palm oil – which can be found in 60% of supermarket products – is destroying some of the world’s largest forests and creates tens of billions of tonnes of carbon emissions annually. NoPalm expects to be on track to commercialisation by next year – entering the market as new EU regulations start to impact some 85% of existing palm oil supply lines.
Ways to change the world every week
