Stafford Capital Partners has established a $1.2 billion timberland continuation fund, its second billion‑dollar timberland vehicle this year, as institutional investors deepen their exposure to forestry assets amid rising demand for sustainable investment opportunities. The Stafford International Timberland Continuation Fund consolidates three of the firm’s existing timberland funds — SIT VI, VII and VIII — into a perpetual structure holding 74 assets across more than 6.3 million acres of commercial timberland in the United States, New Zealand, Australia and Latin America.
“We are excited to offer investors access to one of the most diversified, high-quality timberland portfolios globally, supported by our deep sector expertise and asset management,” said Angus Whiteley, Stafford’s CEO. “The establishment of the Continuation Fund follows closely behind our USD 1 billion close of SIT X, our tenth core timberland fund. We believe this further signals the growing momentum and institutional interest in timberland as a strategic asset class.”
“The strong support from our existing investors demonstrates the continued confidence in our timberland strategy and in a market that continues to deliver stable returns,” according to Stephen Addicott, Stafford’s managing partner. “The Continuation Fund offers investors an opportunity to maintain exposure to a highly diversified, mature timberland portfolio with attractive cash yields and long‑term value.”
Investor backing has been strong. Stafford said 73 per cent of existing investors rolled their commitments into the new fund, while 27 per cent came from fresh capital. U.K. Local Government Pension Funds represent more than half of the fund’s capital, underscoring the sector’s appeal to long‑term pension schemes seeking diversification and inflation‑linked returns.
The portfolio, built between 2011 and 2018, includes some of the largest estates in New Zealand and Australia as well as 37 assets in 15 U.S. states. Stafford said it does not plan new acquisitions for the vehicle but will actively manage the portfolio, consolidating around its strongest‑performing assets. The firm expects to sell down about 28 per cent of holdings over the coming years, targeting cash yields of more than 8 per cent over the next decade.
The launch comes amid a surge of investor interest in timber and forestry assets across Europe. A recent EY report, authored by Raphaël Betti and Saurav Chakraborty, found that European fund managers raised $8.7 billion in timber and forest assets last year, with private equity and venture capital firms increasingly viewing forestry as pivotal to meeting the EU’s Sustainable Finance Action Plan and the EU 2030 Forestry Strategy.
The report described timberland as offering “low correlation to public markets,” built-in inflation protection, and strong climate resilience. “With the convergence of risk, return, and environmental impact, the report suggests that timber and forestry funds are no longer peripheral; they are becoming central to the future of sustainable investment in Europe.”
“Unlike many traditional asset classes, timberland returns are less correlated with public markets and are supported by biological growth, inflation-linked pricing, and increasing demand for sustainable materials. This makes timber and forestry funds particularly appealing in periods of market uncertainty, offering both portfolio diversification and resilience.”
