Diffractive to take position in sustainable land use investment leader with focus on US farmland and timberland
Partnership diversifies Diffractive’s portfolio while building out Conservation’s distribution and business-building capabilities
BOSTON and EXETER, N.H., Jan. 11, 2023 /PRNewswire/ — Diffractive Managers Group, the multi-affiliate asset manager and centralized distribution platform launched by 1251 Capital Group, today announced it has entered into a partnership with Conservation Resource Partners, LLC (“Conversation Resources”), a leading alternative investment firm focused on impact real asset investing. Conservation Resources’ unique strategies combine impact investments in real assets and associated value chain entities to generate alpha while also enhancing the impact outcomes of the land and associated assets it invests.
Since inception, Conservation Resources has invested over $1 billion across over 35 portfolio investments in six funds which have resulted in the permanent protection of 400,000 acres of land and over 1,200 miles of rivers and streams, among a number of other impact outcomes.
The new partnership brings Conservation Resources’ regenerative farmland and impact timberland strategies to Diffractive’s already unique product set and further bolstering Diffractive’s alternative impact offering’s alongside Greenbacker Capital Management and Gitterman Wealth Management. Conservation Resources will be well positioned for continued growth by leveraging Diffractive’s expertise in multi-channel distribution and product structuring expertise. Under the terms of the agreement, Diffractive will acquire an equity stake in Conservation Resources and have two members join Conservation Resources’ Board of Directors.
“We see Conservation Resources as offering a compelling opportunity to partner with a manager of differentiated and impactful investment strategies well positioned for growth in today’s environment. We believe Conservation’s goals align with Diffractive’s, and we see real value and wealth creation opportunities,” said John Hailer, Chairman of Diffractive. “With continued generationally-high inflation possible, Conservation Resources also provides an alternative that will be increasingly attractive to investors in the immediate future as a natural hedge against inflation.”
Paul Young, Chief Executive Officer and co-founder of Conservation Resources, said, “We are thrilled to have the opportunity to partner with Diffractive, which brings a unique set of complementary skills to help us grow our impact strategy going forward. We see Diffractive as a strategic partner that can help guide us into our next phase of growth, providing competitive returns while enhancing the positive impact our strategies have on the environment.”
Under the agreement, the firm will retain independence and full control of the investment process and function, consistent with Diffractive’s policy of empowering management teams to build enduring businesses. “In working with the team over the last few months, we have found a common vision for looking towards the future of asset management and developing innovative ideas on how to impact clients’ portfolios,” said Hailer. “The Conservation Resources team also embodies what we at Diffractive want to do: Hold our values close and do well by doing good.”
Diffractive is led by asset management veterans known for their expertise in building multi-boutique platforms including Michael Wilson, co-CEO of 1251 Capital Group and formerly a member of the founding management team of Affiliated Managers Group, and John Hailer, Chairman of Diffractive Managers Group (and formerly President & CEO of Natixis Global Asset Management in the Americas and Asia).
Further terms of the investment partnership were not disclosed.
About Diffractive Managers Group
Diffractive is a multi-boutique asset management company and a platform company of 1251 Capital Group. Our expertise lies in identifying unique and innovative investment strategies and uncovering partnership opportunities where centralized distribution can drive significant growth. 1251 Capital Group was established with permanent capital from a select group of high-net-worth investors. Prior to launching 1251 Capital, its senior executives spent a combined 55 years investing capital in the asset management industry on behalf of TA Associates and Natixis Global Asset Management. In Diffractive, we set out to operate actively different from other capital partners in the asset management sector. For more information, visit www.diffractivemanagers.com.
About Conservation Resource Partners LLC
Conservation Resources is an impact investment organization founded in 2004. The firm is focused on offering portfolios of natural resources with investments in complementary opportunities along the value chain of the assets we manage. We do so in a manner that seeks to provide above-market rates of return for our investors while optimizing environmental impact values. Conservation Resources worked with Colchester Partners to assist in the transaction. For more information, visit https://www.conservationresources.net/.
Matt Slauson for Diffractive Managers Group
Email: [email protected]
Direct Line: 856-906-0484
SOURCE Diffractive Managers Group