Australian natural capital investor New Forests has raised AUD600 million ($372 million) for the final close of its Australia New Zealand Landscapes and Forestry Fund.
The fund invests in a portfolio of core forestry plantations alongside processing and related infrastructure assets, as well as some ‘targeted’ exposure to agriculture.
It also aims to generate additional revenue from areas such as carbon, biodiversity and renewable energy. Additionally, it aims to enhance climate mitigation through carbon sequestration and emissions reductions across its investments.
New Forests said the fund had attracted institutional investor interest from Europe and the Asia-Pacific region and backing from three new investors: Finnish wealth manager Evli, Kyushu Electic Power and an unnamed German insurer.
The final close comes 12 months after the first close of the fund, which secured backing from Swedish pension fund AP2, German pension group, Bayerische Versorgungskammer, the Australian government’s Clean Energy Finance Corporation, among others.