By Gerelyn Terzo, Global AgInvesting Media
J.P. Morgan Asset Management’s timber strategy has reached a major milestone. The asset management arm of the largest U.S. bank announced the close of its Campbell Global Forest & Climate Solutions Fund II at $1.5 billion, surpassing its fundraising target. as investors flocked to the timber strategy. Launched in 2022, the fund set an original price target of $1 billion, marking the maiden fund launch since the firm’s acquisition of Campbell Global in the prior year. According to a Bloomberg report, J.P. Morgan attracted an additional $800 million to its coffers on top of the $1.5 billion through separately managed accounts, reflecting robust institutional investor demand for the timber strategy.
The forest and climate fund harnesses Campbell Global’s expertise managing commercial forestland across Organization for Economic Co-operation and Development (OECD) regions. The strategy is two-pronged in nature, supporting traditional timber production and carbon sequestration while delivering the advantages of nature-based carbon removal and storage, biodiversity. The fund has attracted commitments from qualified U.S. investors, international banks, European pensions, insurance entities and asset managers.
The Campbell Global Forest & Climate Solutions Fund II has so far acquired three timberland properties totaling approximately 212,000 acres spread across the U.S. Pacific Northwest and U.S. South, with 60 percent of the fund’s capital on the sidelines yet to deploy. In recent months, Campbell Global purchased over 40,000 acres of commercial timberland in the U.S. Pacific Northwest. Situated on the Olympic Peninsula in northwest Washington state. Those assets inherited the name Tyee in a nod to the Cascadia region’s indigenous Native American history.
Campbell Global adheres to sustainable forestry initiative standards enlisted to protect the diverse wildlife and riparian forests across the acreage while also being managed for carbon capture and timber production to satisfy rising demand for sustainable building products.
Of the fundraising milestone, Campbell Global Chief Executive John Gilleland stated, “We’re very pleased to put our decades of experience in global timberland management to work for this quality group of investors interested in responsibly managed forests that generate income and value-appreciation and are a positive climate solution. Along with the financial attributes, the removal of carbon, protection of water, and enhancement of biodiversity and habitats encompass some of the important work we do in the forests on behalf of our investors.”
J.P. Morgan Asset Management Global Head of Private Markets and Customized Solutions Jed Laskowitz said, “This strategy is a unique investment option for our clients, offering diversification from traditional asset classes and income generation, and timberland management is a proven inflation hedge. Given its decades of experience, Campbell Global is well positioned to take advantage of the opportunities in this sector.”
Campbell Global is also overseeing a portfolio of timber assets for U.K.-based pension giant NEST to provide the fund with diversification and stable returns.
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