Timberlands are increasingly being viewed as a “nature-positive” investment by institutional funds – with Stafford Capital Partners yesterday announcing that it has raised US $1.1 billion in one of the world’s biggest timber funds.
That is, according to Angus Whitely, the CEO of Stafford Capital Partners, who said that Stafford International Timberland Fund X – now the fifth largest timber fund after BTG Pactual Brazil Timberland Fund II, Brookfield Global Timber Fund II, Brookfield Timberlands Fund V and The Reforestation Fund – primarily focuses on the secondaries market.
“The secondary market (which trades in assets primary investors had previously bought) is one that’s not populated with many players…so for a motivated seller, we get the opportunity to buy it (the stake) at a reasonable discount.”
Angus Whitely, CEO of Stafford Capital Partners, on the value of forest assets in the secondaries market.
Wood Central understands that of the 13 institutions to invest in the new fund, most are pension schemes and include an insurance company and an investment trust. Around half of the commitments were from the United Kingdom (48%), with the balance coming from Germany (23%), South Korea (19%) and North America (10%).
According to Reuters, Stafford holds an interest in 127 assets covering more than 6.4 million acres of forests, which, together, lock away more than 16 million tonnes of carbon emissions every year.
- To learn why institutional investors are looking to invest in productive forestry to “combine a large-scale sustainable investment with compelling risk-adjusted returns,” click here for Wood Central’s special feature from October 2023.
