Convergence has awarded proof-of-concept stage support under the Blended Finance Accelerator for Fund Managers (A4FM) to Ecotierra to develop the Urapi II Fund, a USD 120 million blended finance vehicle targeting regenerative agroforestry and vertically integrated value chains across Latin America.
Despite strong investor interest in climate and nature-based solutions, institutional capital remains under-allocated to agroforestry due to fragmented value chains, long investment horizons, and limited availability of scalable, integrated platforms. The Latin America region requires an estimated USD 160 billion annually through 2050 to build climate-resilient agrifood systems, yet current investment levels remain at a fraction of this need, highlighting a significant gap between available natural capital opportunities and investable, risk-adjusted products for institutional investors.
Building on the Urapi I Fund, Ecotierra is developing an integrated investment model that combines project development, asset management, and commercialization across the value chain. Urapi II aims to invest in regenerative agroforestry systems, primarily in coffee and cocoa, while supporting processing infrastructure, direct market access, and carbon credit generation. This vertically integrated approach enables greater control over operational and market risks, while capturing value across production, transformation, and commercialization stages. Through this approach Urapi II envisions a future where sustainable land use practices and community-driven regenerative agroforestry projects thrive, contributing to strengthening value chains while mitigating climate change and improving the local environment.
Design question and learning potential from the market: How can blended finance structures be designed to mobilize institutional capital into integrated agroforestry value chains in Latin America?
Ecotierra addresses this by structuring Urapi II as an integrated investment platform that consolidates fragmented agroforestry activities into scalable, vertically integrated value chains. Urapi II focuses on long-term capital deployment into infrastructure, land restoration, and value chain reinforcement, generating diversified revenue streams from processing services, carbon credits, and structured exits with local partners. The fund leverages catalytic capital to de-risk investments, enabling the mobilization of private institutional capital into nature-based solutions while supporting deeper impact outcomes. By integrating operational control, value chain participation, and financial structuring, the model seeks to reduce perceived risks and establish a scalable, institutional-grade approach to agroforestry investment.
The Accelerator will support the refinement of the blended capital structure, advancement of legal and financial structuring, strengthening of impact and gender frameworks, and engagement with prospective investors, helping position Urapi II for successful fundraising.
