By Gerelyn Terzo, Global AgInvesting Media
BNP Paribas has locked in thousands of hectares of U.S. timberland. Through the BNP Paribas Future Forest Fund, which made its debut a year ago, the firm has made its first two investments for this strategy, furthering its sustainable timberland ambitions. The deals span a combined 8,550 hectares of sustainably managed timberland across the northeast and southeastern U.S., achieving a milestone in its mission to combine financial yields with environmental stewardship.
By pairing active forest management and long-term ownership with sustainability goals, the fund is positioning working forests to deliver income today while improving the environmental value over the long term. The Future Forest Fund debuted with a first close of $130 million while pursuing a $500 million target with a $750 million hard cap, positioning the investment vehicle to scale across a pipeline that includes North America and certain international markets.
BNP Paribas Asset Management’s inaugural investment from the Future Forest Fund encompasses a 3,550-hectare, FSC-certified timberland property in southwest Maine, strategically designed to balance near-term cash flows with long-term asset appreciation. The forest features a diverse blend of spruce-fir, white pine and northern red oak, positioned to capitalize on growing market demand. With a varied mix of age classes, this asset enables strategic harvesting opportunities while supporting ongoing productivity through sustainable management practices. Its proximity to working mills and an extensive internal road network further strengthens operational efficiency, reducing transportation costs while improving the economic performance and sustainable forestry practices at scale, per the announcement.
Beyond timber harvests, the Maine asset is equipped for multi-strand cash flows, including recreation leases, guided eco-tourism and participation in voluntary carbon markets, widening revenue streams without the added pressure of cutting down trees. Nestled in a landscape revived through over a century of dedicated private restoration efforts, the property has been shielded since 2013 under a collaborative conservation easement that protects its thriving ecosystems and unique native plant species.
BNP Paribas Asset Management’s second investment from the Future Forest Fund spans 5,000 hectares of prime timberland in southeast Alabama and Mississippi, a region with a reputation for its rapid pine growth, abundant mills and streamlined supply chains. At its core, the property features planted pine forests with a mix of mature, harvest-ready trees and emerging younger ones, paving the way for phased harvesting designed to deliver consistent short-term income while letting natural growth build value over time.
Erik Anderzén, Fund Manager of the BNP Paribas Future Forest Fund, stated, “These foundational acquisitions demonstrate the fund’s strategic focus on high-quality, productive forest assets that align financial performance with environmental responsibility. By investing in sustainably managed forests, we aim to provide our investors with nature-based solutions that drive long-term value and measurable climate impact.”
BNP Paribas Asset Management Biodiversity Lead Robert Alexandre Poujade commented, “Our partner IWC is bringing the strategy to life with a strong commitment to sustainability. The first dedicated actions have been carefully crafted alongside site-specific monitoring protocols to enhance forest resilience, habitat quality, and carbon storage in both assets.”
Looking ahead, the Future Forest Fund is poised to expand its horizons with two timberland assets currently under contract in New Zealand, encompassing a total of 1,200 hectares and awaiting regulatory approvals. By venturing into the Southern Hemisphere, the fund gains valuable counter-seasonal balance, strengthening its diversification across geographies, climates and currencies while deepening its dedication to responsible forestry practices.
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