Mitsui and Nomura enter agreement to acquire New Forests
Supporting New Forests’ growth ambitions, enhance investment capabilities and access to global network
SYDNEY, TOKYO: 20/05/2022 – New Forests, a global investment manager of nature-based real assets and natural capital strategies, today announced Mitsui & Co., Ltd (Mitsui) and Nomura Holdings, Inc (Nomura), have entered into an agreement to purchase a 100% shareholding of New Forests.
The agreement, which is subject to regulatory approval and expected to be completed by December 2022, will see Mitsui become a 49% shareholder and Nomura a 41% shareholder, with the remaining 10% shareholding retained by New Forests’ staff. Mitsui has been a shareholder in New Forests since 2016 and will increase its shareholding from approximately 23% to 49%.
Mitsui and Nomura will provide capital to support New Forests’ strategic growth initiatives and the global expansion of its investment platform. In addition, New Forests will leverage Nomura’s global distribution network particularly across Japan and more broadly in Asia.
Mitsui and Nomura share New Forests’ commitment to sustainability and vision to see investment in sustainable land use and forestry as central to the transition to a sustainable future—including addressing climate change and the conservation of nature; supporting the transition to a circular bioeconomy; and contributing to the prosperity of communities where New Forests operates.
Hiroshi Kakiuchi, Managing Officer, Chief Operating Officer, Performance Materials Business Unit at Mitsui said, “Mitsui’s investment in New Forests is part of our sustainability strategy to invest in companies who are at the forefront of climate change mitigation and who are positively contributing to communities. We are looking forward to our continued partnership with New Forests and supporting its next stage of growth.”
Yoshihiro Namura, Senior Managing Director, Head of Investment Management Division, at Nomura said, “We have been impressed with New Forests’ leadership and track record in sustainable forestry and land use and see New Forests’ approach to climate change being complementary to Nomura’s business. As a large global financial services group, we play a significant role in helping to solve environmental challenges, and we see investment in sustainable land use and forestry as a key part of the solution.”
As part of this agreement, founder, CEO and Chairman David Brand will continue with New Forests until 30 June 2025 and focus on strategic initiatives and growth opportunities.
David Brand, CEO of New Forests said, “New Forests has achieved a great deal over the past 17 years, growing institutional investment in the forestry asset class and re-imagining the investment opportunities in rural landscapes. The rising need to substantially increase investment in sustainable land use, along with increasing investor interest is creating an opportunity to accelerate the growth of New Forests.
I am delighted to have found two partners in Mitsui and Nomura who share in our vision and will provide us the support to further scale our business and provide new opportunities for our clients, stakeholders and our 100 staff.”
Two representatives each from Mitsui and two from Nomura will join the New Forests board of directors, along with two independent directors and an employee nominee director.
Grant Samuel acted as financial advisor and Clayton Utz as legal counsel to New Forests on the transaction. Financial details of the transaction are confidential.