Timberland

In a year of economic shocks and volatility across asset classes, the UK’s forestry sector demonstrated low or inverse correlations to equities and bonds.

Eric Cooperstrom says Manulife’s Forest Climate Fund will support both internally developed projects and collaborations with established carbon development companies familiar with regional methodologies and regulation.

New Forests’ ANZLAFF is its fourth fund focused on Australia and New Zealand, investing in plantation forestry, infrastructure and agriculture.

The Sustainable Forestry and Natural Capital Fund will target an 8% to 9% net IRR over the 10-year life of a fund designed to target mitigation, carbon and water conservation opportunities.

A future price convergence between carbon credits and timber products could increase stumpage prices, potentially leading to more mill operators purchasing forestry assets.

Bluesource Sustainable Forests Co. vice president Aaron Paul says the collaboration with credit-focused Oak Hill Advisors represents a ‘private equity bet on the carbon markets.’