Tierra del Fuego: Marking 20 Years of Wilderness Preservation

A Unique Opportunity Uncovered During the Normal Course of Business

In 2002, the firm purchased a portfolio of distressed debt assets, which included a delinquent note that was secured by a vast tract of ecologically significant forestland in Tierra del Fuego, Chile.  After conducting an in-depth analysis of the territory and recognizing a unique opportunity to preserve an important part of the world’s biodiversity for future generations, the firm began a comprehensive search for an organization that could help make this opportunity a reality.  

Forming an Unprecedented Public-Private Partnership 

In one of the world’s largest land gifts for conservation, Goldman Sachs formed a first-of-its-kind public-private partnership with the Wildlife Conservation Society (WCS) in 2004. 

In a To All to the firm, Hank Paulson, former chairman and CEO of the firm, and Lloyd Blankfein, at the time president and chief operating officer, announced to the people of Goldman Sachs: “It was determined that this huge tract of unspoiled land, unique in the Southern Hemisphere, could and should be preserved . . . The firm’s leadership and Board of Directors saw this as an opportunity to act in the public good while also acting in the interest of our shareholders.” 

Founded in 1895 and based in New York, WCS is one of the most respected conservation institutions in the world. The nonprofit was identified as ideally suited to receive what would become Karukinka Natural Park and take primary responsibility for the maintenance of the nature reserve.  

One of the Greatest Wild Places Left on Earth 

Since the park’s establishment, WCS has worked with local conservationists and other groups to coordinate a range of efforts to study, protect and preserve the ecologically diverse land, while developing a sustainable plan to support the livelihoods of local communities. 

More than 100 species of animals have been recorded in Karukinka. As one example, Chile’s most endangered mammal – the Fuegian culpeo fox – takes refuge in the forested areas of the park. The large guanaco population in Chile and elephant seals are among other species represented in the wildlife of the park.   

In 2007, the Karukinka park expanded from its original 680,000 acres (or 1,062 square miles) to more than 735,000 acres through a transaction with the Onamonte Community, which provided WCS with title to a tract of land joining the two separate parcels of the original reserve, thereby allowing for more effective management and helping to assure the ecological viability of species endemic to the region. 

20 Years On: Entrepreneurship, Teamwork and Long-Term Thinking 

During the past two decades, WCS has focused its efforts on park management, including by establishing permanent staff to protect key areas in Karukinka and preventing direct threats to wild, aquatic and terrestrial life in the reserve; the control of invasive species, including through large-scale experiments to evaluate the effect of beaver control on ecosystem recovery; and ongoing research and monitoring.

Today, Karukinka is a flagship for wildlife conservation in Patagonia. In particular, it continues to serve as a model demonstrating how the private sector can engage in conservation activities.