By Gerelyn Terzo, Global AgInvesting Media
Asset manager France Valley, which specializes in natural capital, has expanded the reach of its timber investment strategy, extending access to its European Forestry Fund across the continent. As part of this effort, France Valley has opened its timber fund to private and professional investors across Europe, broadening access to a resilient asset class in response to growing demand for diversification and sustainability. Until now, access to the fund has been limited to domestic private investors. Through the expansion, the timber strategy is now open to individual investors as well as institutions in Europe.
Launched in 2021 and seeded with €150 million (US $173.7 million) from French family offices, the European Forestry Fund is evergreen in nature and classified as Article 9 under the Sustainable Finance Disclosure Regulation. France Valley boasts an extensive timber footprint across 12 European countries and more than 60,000 hectares (148,263 acres) under management.
According to France Valley, this investment vehicle is the sole dedicated pan-European forestry fund with such investment coverage. Timberland is considered an underutilized asset class, one now gaining traction thanks to its alignment with Europe’s climate and conservation targets.
France Valley CEO Arnaud Filhol stated, “Our European footprint allows investors to optimize their timber exposure and access the full diversity of forest soils, climates and wood markets — with better risk management, more consistent yield and stronger legal frameworks.”
France Valley is betting on Europe for a reason. The firm believes the best way to build long-term value and manage risk in forestry is through broad diversification by country, climate, tree type and age. Its timber fund reflects this strategy, stretching from Germany and France to the Nordic forests, down to Central and Eastern Europe. By spreading investments across boreal, temperate and continental zones, this approach helps reduce the impact of local disruptions like wildfires or pests.
The portfolio blends fast-growing conifers with hardwoods and includes everything from young tree stands to mature, income-generating forests. It’s also designed for balance, pairing the slow-and-steady growth of low-volatility markets like Finland and Germany with higher-yield opportunities in places like Romania and Latvia. France Valley sees Europe as offering legal stability, strong environmental standards and reliable institutions.
France Valley oversees more than €5 billion (US$5.8 billion) in real assets, roughly one-fifth of which is tied directly to natural capital, positioning it as one of Europe’s most geographically expansive forestry investors. Backed by a field network of over 100 forest managers, the firm screened nearly 1,000 potential acquisitions in 2024, ultimately scooping up 160 properties, often securing assets at a 7–10 percent discount to their appraised value.
The timber fund features a 10 percent cash buffer and replenishment mechanism for liquidity, with all 2024 redemption requests settled in under 48 hours without asset sales. It also holds a Greenfin label, underscoring its environmental focus.
“Forests are one of the few real assets that combine capital preservation, stable yield and measurable environmental impact,” said Filhol. “Our pan-European fund is designed to make this opportunity accessible — at scale, and with discipline.”
The move reflects surging investor interest in timber as an inflation-hedged, uncorrelated alternative amid economic uncertainty and climate concerns. By opening to retail investors, France Valley taps into demand from individuals seeking sustainable portfolios, potentially accelerating capital flows into European forestry.
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