By Gerelyn Terzo, Global AgInvesting Media

Paris-based France Valley, which specializes in natural capital investments, has achieved a formidable milestone, clinching a massive €600 million (US$689.2 million) close for its flagship forestry fund, France Valley Patrimoine. This impressive capital commitment not only bolsters the firm’s enviable position but also secures its place as a European leader for natural capital, with total assets under management in this segment now soaring past the €1.1 billion (US$1.26 billion) mark across sustainable forestry, ag land and vineyards.

France Valley’s natural capital portfolio covers 450 forests, stretching across 10 countries and encompassing a vast 55,000 hectares of timberland. This broad exposure is what France Valley says gives the firm its unique edge. Today, most of the demand the firm sees originates from European institutional investors aiming to anchor part of their natural capital allocation in European forestry.

Of the fundraising, France Valley CEO Arnaud Filhol stated, “This close marks a significant step in our journey as a European platform dedicated to natural capital. We offer institutional investors access to stable, inflation-resilient real assets that are directly linked to climate and biodiversity outcomes.”

Filhol went on to share in a LinkedIn Post: “In terms of capital raised, our main forestry fund, GFI France Valley Patrimoine, has become the largest forestry fund in Europe. Size is not a guarantee of quality and performance; it only highlights the investor trust we owe, and our responsibility.”

The fund’s sprawling portfolio is entirely dedicated to French woodland, encompassing a massive 35,000 hectares (86,486 acres) of sustainably managed forests. The majority of the holdings – 80 percent – are carefully aligned with the EU Taxonomy for sustainable activities, cementing a profound dedication to green investments.

Structured as an evergreen fund, the Patrimoine fund (Groupement Forestier d’Investissement) will stay open and continue to collect capital on a rolling basis by design. The latest capital raising milestone vaults it into pole position as France’s foremost forestry fund. This scale reflects the growing recognition of forestry as a long-term, resilient asset class. France Valley shared with GAI News:

“It is now among the largest dedicated forestry vehicles in Europe, if not the largest — and clearly the largest with this evergreen structure. This scale reflects the growing recognition of forestry as a long-term, resilient asset class.”

Forestry is truly coming into its own as an asset class, attracting a significant increase in investor interest. It’s now more frequently viewed as a strategic, independent component of institutional portfolios, a reflection of its growing recognition. According to France Valley, market drivers are clear, including:

• Attractive risk-adjusted returns
• Strong diversification benefits, with low correlation to other asset classes
• Natural hedge against inflation, backed by historical performance
• Clear environmental and climate benefits, including carbon sequestration and biodiversity preservation – hence a strong alignment with LPs sustainability goals

On performance, France Valley’s forestry portfolio’s net asset value has consistently charted an upward annual trajectory, boasting a robust 6.33 percent surge in 2024, and an impressive cumulative jump of 17.5 percent since its inception. In the making of a trend, data from France’s official rural land agency (SAFER) reveals that forests exceeding 25 hectares (61.7 acres) across France have seen their value climb by nearly 70 percent over the past decade, highlighting the compelling value and resilience inherent in timberland investments.

Alongside its domestic focus, France Valley is expanding its geographic reach across the continent. Its European Forestry Flagship Fund (France Valley Foncière Europe) is spearheading this drive, a diversified fund now holding €150 million (US$172.3 million) in forestry assets spread across 10,000 hectares (24,710 acres) in a number of European nations. This fund also delivered solid performance, recording a 5 percent lift in share value by the close of 2024, reflecting the rising demand for land-based climate solutions.

France Valley offers institutional investors access to a deeply underpenetrated but mature European market — with estimated annual forest transactions in Europe reaching €6 billion and a total addressable forestry investment market of €15 billion – €20 billion. Their expertise across 10 European countries and a rigorous ESG framework makes France Valley a natural partner for those seeking sustainable, performing real assets exposure.

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