Goldman Sachs Asset Management (GSAM) introduced its first biodiversity-focused bond fund, providing fixed-income investors with an opportunity to support nature conservation.
The fund aims to raise between $300m and $500m over the next three to five years, investing in corporate bonds linked to biodiversity impact.
The fund will hold between 40 and 70 investment-grade corporate bonds across developed and emerging markets. Around 20% will be allocated to biodiversity-labeled bonds, such as those funding forest restoration, while the remainder will include general-purpose bonds from companies committed to sustainability, including waste management firms.
GSAM has registered the fund under Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR), the strictest classification for ESG investments. Find out more about sustainability efforts and balancing ESG commitments with financial performance at the Nordics Private Equity Conference in November 2025.
Biodiversity finance is gaining momentum, particularly in Europe, where investor interest is strongest. Bram Bos, global head of green, social, and impact bonds at GSAM, noted that while private investors are increasingly drawn to the sector, demand in the U.S. remains limited due to shifting sustainability policies. Despite this, GSAM sees growing interest in markets such as the Middle East and Asia.
The launch aligns with global biodiversity negotiations in Rome, where representatives from 150 nations are working to secure $200bn annually for nature protection by 2030. BloombergNEF estimates that sustainable bond issuances with potential biodiversity benefits reached $235bn by August last year, though measuring direct impact remains a challenge.
GSAM has already secured an anchor investor for the fund but has not disclosed further details. The product will be managed within GSAM’s $1.75tn fixed-income unit and will offer investment options across multiple currencies, including the dollar, euro, and pound sterling. As private sector interest in biodiversity finance continues to rise, GSAM’s fund aims to position biodiversity investing more firmly within mainstream fixed-income markets.
Source: pe-insights.com
