New Forests has raised A$600m at final close for the Australia New Zealand Landscapes and Forestry Fund, with commitments from institutional investors from across Europe and Asia-Pacific.
New Forests, the global investment manager focused on nature-based assets, has announced the final close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF) with commitments of approximately A$600m (€361m) in total from European and Asia-Pacific institutional investors.
This latest funding round included Nordic wealth managers Evli, Japanese energy company Kyushu Electric Power and an unnamed German insurance company.
The fund provides exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand targeting investments in forestry plantations alongside processing and related infrastructure, with some targeted exposure to agriculture assets.
Early last year, Impact Investor reported on ANZLAFF’s first close of A$450m, which included allocations from Swedish pension fund Andra AP-fonden (AP2), German pension group Bayerische Versorgungskammer (BVK) and the Australian Government’s Clean Energy Finance Corporation (CEFC), along with an Australian and a German insurer, who were both unnamed.
Commenting on Evli’s investment, Roger Naylor, portfolio manager of Evli Fund Management Company, a subsidiary of Evli, said: “We are excited to make our first investment in the Australia and New Zealand region. This move not only enhances our portfolio diversification but also positions us to capitalise on the significant growth opportunities in both the domestic and Asian markets.
“New Forests is a proven and highly reputable local manager we regard as amongst the best in class for responsible investing. We are confident that by taking a landscape approach, the investment will deliver strong returns while meeting our high standards for ESG performance.”
Net zero, conservation and the circular bioeconomy
New Forests, which as at 30 June 2024 had A$11.6bn in assets under management across more than 4.2 million hectares of investment, manages a diversified portfolio of sustainable timber plantations and conservation areas, carbon and conservation finance projects, agriculture, timber processing and infrastructure.
David Shelton, New Forests’ managing director for Australia and New Zealand, added: “It is exciting to see investors globally are increasingly considering how they can gain exposure to natural capital through an integrated investment into land, forestry, agriculture, carbon and biodiversity.
“Investors are looking to allocate capital to these areas for strong returns and option value on future strategies, combined with a desire to contribute to net zero goals, conservation, and the growth of the circular bioeconomy.”
