Timberland

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.’