Nuveen launches nature-based strategy with $100 million TIAA anchor

Nuveen Natural Capital launched a global nature-based solutions strategy on Nov. 12 with a $100 million anchor commitment from TIAA, Nuveen's parent, ESG Today reported.

The portfolio is to be concentrated in developed markets, including the U.S., Australia and Europe, and will target regenerative agriculture, sustainable forestry and ecosystem restoration. Returns are meant to come from agricultural and forestry production, land value appreciation and ecosystem services such as carbon, water and biodiversity projects. Nuveen did not disclose the strategy's fee, legal structure or whether it will accept third-party capital.

For fund selectors, the diligence question is how carbon, water and biodiversity revenue is verified and priced; those cash flows depend on project measurement rather than crop yields or timber harvests.

Nuveen said the strategy is the first time Nuveen Natural Capital has combined farmland, timberland, environmental markets and ecosystem restoration in a single vehicle. Nick Moss, Nuveen's head of nature-based climate solutions, leads it, and the firm said it draws on four decades of originating and managing land-based assets.

Martin Davies, global head of Nuveen Natural Capital, said: "What's new here is that we're now bringing all of that expertise together into a single strategy for the first time."

The launch follows J.P. Morgan's rebranding of timberland advisor Campbell Global as J.P. Morgan Natural Capital, an $11 billion platform across land, carbon and biodiversity. Crédit Agricole has also launched a natural capital finance and investment division.