“The fish farming industry needs to further improve biological conditions and fish welfare and reduce its climate footprint. Our portfolio companies contribute towards solving many of the challenges the industry face.”
Norwegian seafood investment firm Bluefront Equity, has launched a second investment fund, Bluefront Capital II.
The firm has successfully secured $50 million for its initial funding, with notable commitments from major impact investment firms.
Bluefront Equity was established in 2020 and is headquartered in Oslo. The fund is the Nordic region’s only independent private equity fund that focuses exclusively on the seafood industry. Their first fund, Bluefront Capital I, invests in small and medium-sized seafood companies that offer sustainable solutions in digitalization and automation, hygiene systems, increased quality and traceability, ocean and fish health, as well as innovative production methods
Like its predecessor, Bluefront Capital II is dedicated to investing in companies that enhance the sustainability of the seafood value chain. This includes advancements in software, fish welfare, and ocean health. Global investment firm Cambridge Associates conducted a rigorous due diligence on the new fund, validating Bluefront’s approach. Cambridge Associates manages and advises on assets worth $569 billion globally.
Simen Landmark, partner at Bluefront, highlighted the endorsement from Cambridge Associates.
“Cambridge Associates’ due diligence process is the most thorough and rigorous we have ever experienced. We are proud to have met their stringent investment criteria. The combination of being a pure-play seafood investor and a certified sustainability fund in line with the EU’s comprehensive taxonomy guidelines is a good match for their profile,” said Landmark.
The fund has attracted repeat investments from major backers of the first fund, including Havfonn, Steensland group, 3S Invest, and Klaveness Marine among others.
“The continued commitment from our initial investors reaffirms the positive trajectory of our first fund,” added Landmark.
Bluefront Capital I has already made significant impacts by becoming the majority stakeholder in several growth-oriented companies such as Bio Marine and Seaqloud, which are innovators in fish welfare and ocean health monitoring.
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“The fish farming industry needs to further improve biological conditions and fish welfare and reduce its climate footprint. Our portfolio companies contribute towards solving many of the challenges the industry face,” said Kjetil Haga, partner at Bluefront.
With the new fund operational, Bluefront is actively engaged in due diligence processes and anticipates completing an acquisition before the summer holidays, according to a release from the company on Monday.
“The distinct sector-focused strategy of Bluefront has made our deal flow stronger than ever,” said Haga. The portfolio benefits from the expertise of industry advisors including former Mowi CEO Alf-Helge Aarskog and other notable figures, enhancing the fund’s capability to drive sustainable practices in the seafood industry.
Bluefront Equity has strategically invested in a series of Norwegian companies that are innovating towards more sustainable practices in the seafood industry. In January 2022, Bluefront invested in Akvasafe, a technical and environmental auditor that promotes sustainable aquaculture by inspecting and certifying farming systems. A few months later, in April 2022, the firm backed Bio Marine, which provides oxygen and light management systems to improve animal welfare, accelerate growth, and reduce mortality in aquaculture cages.
Continuing its commitment to eco-friendly solutions, Bluefront invested in Redox in June 2021. Redox focuses on eco-friendly disinfection and biosecurity solutions using ozone, reducing chemical usage and enhancing biosecurity across the seafood value chain. In November 2022, Bluefront supported Seaqloud, a company that offers data aggregation and infrastructure software solutions to enhance resource efficiency, safety, and quality in seafood production through better-informed decision-making.
March 2023 saw Bluefront’s investment in Spillfree, a developer of AI-backed software that optimizes feeding processes, thus reducing feed spill and improving feeding efficiency. Another significant investment was made in June 2022, when Bluefront funded Tempia, which provides innovative low-emission refrigerant solutions using CO2 and NH3, significantly cutting emissions compared to traditional freon-based refrigerants.
In addition to the core team, the portfolio companies also benefit from access to industry advisers with extensive seafood industry experience. Bluefront’s industry advisers include former Mowi CEO Alf-Helge Aarskog, former BioMar EVP Jan Sverre Røsstad, founding partner of the venture fund Springbank Jennifer Lee Koss, and HitecVision-partner Arne Trondsen.
