Gresham House
Specialist asset management
October 2025
October 2025
Over the past decade, natural capital has evolved from a specialist allocation to an essential component of strategic portfolio construction.
The rationale for its inclusion has never been stronger. In an environment characterised by persistent inflation, elevated volatility, post-COVID supply chain rewiring, and rising geopolitical risk, institutional investors are reassessing portfolio design from first principles. Within this context, the case for natural capital is structural rather than cyclical.
Read our latest paper on why natural capital should be treated as a core allocation rather than a peripheral diversifier.
The thesis is underpinned by durable fundamentals:
- Inelastic demand for food, timber, and ecosystem services
- A finite and, in some regions, declining stock of productive land
- The capacity to generate long-duration, inflation-linked cash flows with low correlation to public markets
Click here to download the article
Author
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| Eoin McDonald Director, Global Natural Capital |
Jose Melero Intern, Natural Capital |
