January 28, 2025

By Gerelyn Terzo, Global AgInvesting Media

New Forests, global investment manager of nature-based real assets and natural capital strategies boasting A$11.6 billion (US$7.2 billion) in assets under management, has reached the final close of its Australia New Zealand Landscapes and Forestry Fund (ANZLAFF). New Forests attracted approximately A$600 million (US$374.8 million) to its coffers from institutional investors across Europe and Asia-Pacific, welcoming a trio of new investors as well as existing investors to the fund.

New investors participating in the final round included Evli, an investment management business spanning Finland and Sweden, Japanese energy company Kyushu Electric Power and a German insurance company. ANZLAFF’s final close comes on the heels of New Forests’ first close of the ANZLAFF fund, reflecting commitments from a handful of big investors, including Swedish pension fund Andra AP-fonden (AP2), German pension group Bayerische Versorgungskammer (BVK) and the Australian Government’s Clean Energy Finance Corporation (CEFC), as well as an Australian and a German insurer.

ANZLAFF takes a hybrid approach to investing, combining forestry and agriculture for a whole of landscape model to maximize economic and social outcomes. Investors receive exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand. The strategy focuses on core forestry plantations alongside processing and related infrastructure, including some targeted exposure to ag assets. As New Forests CEO Mark Rogers previously explained,

“We’re not that different from an avocado farmer. If you plant an avocado tree, you have to wait six or seven years, then you start harvesting the fruit. We plant a eucalyptus tree, and we harvest in 12 years. It’s a longer rotation, but very similar in concept.”

More than half of Australia’s land mass is dedicated to farming. New Forests’ New Agriculture division reportedly oversees over 3 million hectares (7.4 million acres) of ag land, with plans to expand its footprint in 2025. New Forests’ Bruce King is cited by LinkedIn as saying, “To be able to own and manage such a large parcel of landscape does give us an ability to play an outsized role in improving the land with regenerative agriculture.”

New Forests sets out to deliver the benefits from applying the best use of land across forestry and ag while harnessing additional revenue streams from carbon, biodiversity and renewable energy, including solar and wind. New Forests will strive to seize climate mitigation through carbon sequestration and emissions reduction where the opportunities arise across investments.

New Forests Managing Director for Australia and New Zealand David Shelton stated, “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.”

Evli Fund Management Company Portfolio Manager Roger Naylor said, “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 capitalize on the significant growth opportunities in both the domestic and Asian markets.”

Kyushu Electric Power’s Chief Group Manager of Industrial Creation Group Kenjiro Miura commented, “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.”

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