New Forests announces final close of Australia New Zealand Landscapes and Forestry Fund
LONDON/SYDNEY, 15 January 2025 – New Forests, a global investment manager of nature-based real assets and natural capital strategies, is today announcing the final close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), raising approximately A$600 million from institutional investors from across Europe and Asia-Pacific, including three new investors.
ANZLAFF provides exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand targeting investments in core forestry plantations alongside processing and related infrastructure, with some targeted exposure to agriculture assets.
The Fund aims to maximise the value of the whole landscape by positioning investors to benefit from the best use of the landscape across forestry and agriculture, while combining additional revenue streams such as carbon, biodiversity, and renewable energy such as solar and wind. It will also seek to enhance climate mitigation through carbon sequestration and emissions reduction opportunities across its investments.
Among the new investors in the Fund’s final close are Evli, an investment management business spanning Finland and Sweden; Kyushu Electric Power, a Japanese energy company; and a German insurance company.
David Shelton, Managing Director, Australia and New Zealand at New Forests said
“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.
“We are particularly pleased that existing clients have re-invested with us again, while we are also excited to welcome a cohort of new clients to New Forests via this Fund. Some of these have come from the relationship with our new owners, Nomura Asset Management and Mitsui. We are looking forward to continuing to expand these relationships with all of our valued clients.”
Roger Naylor, Portfolio Manager, Evli Fund Management Company Ltd said, “Evli’s forestry fund of funds invests globally in sustainable commercial forestry and offers investors a well-diversified portfolio with low correlation to other asset classes. 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.”
Kenjiro Miura, Chief Group Manager of Industrial Creation Group at Kyushu Electric Power said, “We are proud to announce our first-ever investment in a forestry fund, a significant step aligned with our mission to contribute to the development of a sustainable society.
By partnering with New Forests, a global leader in sustainable forestry management, we aim to create value not only through stable returns but also through meaningful environmental contributions, including CO2 sequestration and reductions in greenhouse gas emissions.”
The final close comes 12 months after New Forests announced the first close of ANZLAFF with commitments from five investors including Swedish pension fund Andra AP-fonden (AP2); German pension group Bayerische Versorgungskammer (BVK); the Australian Government’s Clean Energy Finance Corporation (CEFC); along with an Australian and a German insurer.
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