For several decades, natural capital as an asset class has become an increasingly important part of institutional portfolios. This has traditionally included investments in timberland and farmland. Investors in the asset class have come to appreciate and value the wide range of benefits that natural capital can bring to an investment portfolio, which include traditional financial benefits as well as sustainability benefits.
Over the last few years there has been an evolution of the asset class, and a convergence of critical trends are providing opportunities for investors to benefit from diversified investment strategies and exposure to environmental markets while contributing to solutions for addressing climate change and biodiversity loss.
Do you want to explore the evolution of natural capital and the trends driving increasing investor interest in nature-based solutions? Read the full article here and subscribe to receive the latest insights.
Important information on risk
Investors should be aware that alternative investments including private equity and private debt are speculative, subject to substantial risks including the risks associated with limited liquidity, the potential use of leverage, potential short sales and concentrated investments and may involve complex tax structures and investment strategies. Alternative investments may be illiquid, there may be no liquid secondary market or ready purchasers for such securities, they may not be required to provide periodic pricing or valuation information to investors, there may be delays in distributing tax information to investors, they are not subject to the same regulatory requirements as other types of pooled investment vehicles, and they may be subject to high fees and expenses, which will reduce profits. Real estate investments are subject to various risks associated with ownership of real estate-related assets, including fluctuations in property values, higher expenses or lower income than expected, potential environmental problems and liability, and risks related to leasing of properties. Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well. Investments in middle market loans are subject to certain risks such as: credit, limited liquidity, interest rate, currency, prepayment and extension, inflation, and risk of capital loss. Private equity and private debt investments, like alternative investments are not suitable for all investors given they are speculative, subject to substantial risks including the risks associated with limited liquidity, the potential use of leverage, potential short sales, concentrated investments and may involve complex tax structures and investment strategies. Nuveen, LLC provides investment solutions through its investment specialists. This information does not constitute investment research as defined under MiFID.
