Investment execs had head start on New England industry future
"Two months before the Environmental Defense Fund achieved a political policy triumph with the vote last week to transform the New England groundfishery from a commonly held resource into negotiable commodities, a bullish EDF executive was urging institutional investors to buy these catch shares.
EDF vice president David Festa's projection was a 400 percent return on the investment, based on what he said was recent experiences with the imposition of catch shares in other fisheries.
A consultant to EDF spoke of returns of 10 or even 20 times investment.
"It's not telecom money, but it's real money," Festa advised a small but influential private audience of mutual and hedge fund managers and ENGO — or environmental non-government organization — officials at an April 28 panel on "Innovative Funding for Sustainable Fisheries and Oceans."
The panel was part of the 2009 Milken Institute Global Conference in Los Angeles, "the largest gathering of capital markets in North America," according to Jennifer Manfrî, communications director for the non-profit, think tank. The institute is a public-private partnership created by Michael Milken, the financial innovator who helped create junk bonds in the 1970s, that directs private capital into investments that serve the advisors' sense of the public interest.
Investor interest in the New England groundfishery was noticeably and recently on the uptick even before the New England Fishery Management Council last week voted nearly unanimously for an industrial re-engineering that would cap total fish catch and divide the total allowable catch into shares to be distributed to permits that are aggregated into business cooperatives known as sectors.
But , unlike the 90-minute analysis of investment opportunities in new catch share fisheries before the influentials in Los Angeles in April, the four-day meeting in Portland that ratified the catch share system produced not a peep about the capital investment implications of what Festa called a "paradigm shift" in the approach to managing the bounty of the sea."
Read "Fishing catch shares suddenly become hot 'commodities' "

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