September 8, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

New Forests, a global manager of nature-based real assets and natural capital strategies, the second largest forestry investment manager in the world, and the largest in the timber and plantation sectors in Asia-Pacific, is expanding through the formation of a new ag investment business division. 

Headquartered in Sydney since its inception in 2005, New Forests is a certified B corporation with operations in Australia, New Zealand, Southeast Asia, Africa and the U.S. that offers high-impact strategies in sustainable forestry and its related sectors.

The group currently holds a portfolio with AUD8.7 billion (US$6.5billion) in AUM across more than 1.1 million hectares (2.7 million acres) across diversified holdings consisting of sustainable forest plantations, areas of natural forest conservation, carbon and conservation projects, agriculture, timber processing, and infrastructure assets.

New Agriculture has been launched as a means to expand horizons – a global vehicle through which to build a portfolio of agricultural assets beginning in Australia and New Zealand, and eventually expanding into developed markets such as the U.S. and Europe, GAI News was told.

Anchoring the fund will be the management of Lawson Grains, a 100,000-hectare aggregation acquired by New Forests and Alberta Investment Management Company (AIMCo) last year for $600 million from Macquarie Asset Management.

In time, the New Agriculture team told GAI News, this new platform will be of a similar scale to New Forests’ existing forestry funds.

“Lawson Grains is a high quality and diversified agricultural business with an experienced management team,” said Mark Rogers, senior managing director, Australia, New Zealand, U.S., New Forests at the time. “We look forward to working with the management team to continue to build the business and add value.”

Despite a foundation in grain, GAI News was told that New Agriculture will be open to a broad range of investment opportunities with a goal of building out a diversified portfolio of agricultural assets with an intention to manage those assets to achieve market leading returns via sustainable agricultural production that aligns with New Forests’ strategic impact objectives of contributing to nature-based solutions, shared prosperity, and the advancement of a circular bioeconomy.

“New Agriculture builds upon New Forests’ 17-year track record managing forestry and other landscapes for sustainable production,” said Rogers.

“Like forestry, agriculture is a real asset which provides investors with a strong cash yield, a natural inflation hedge and is uncorrelated to other asset classes. By combining our experience in forestry with agriculture,” Rogers continued, “we can seek to optimize the value of the land between sustainable food and fiber production, carbon sequestration, conservation, and community benefits.”

“We believe that by improving agricultural land management and optimizing landscapes for multiple uses, the global economy will transition to a sustainable future.”

A strong mission and strong returns require a strong team. The four appointed to head up New Agriculture include:

Bruce King, director of agriculture – King brings 20 years of experience in ag investing, most recently in the role of CEO of Regional Investment Corporation in Australia, where he oversaw AUD3 billion in financing for a range of investments in the sector. Prior to that, King was an investment manager for Blue Sky Alternative Investments and spent 13 years with Rabobank International serving in a series of roles including head of agribusiness risk, treasury management, and head of rural treasury sales. 

Ben Mason, portfolio manager – Mason has extensive experience in both the private and public sectors, most recently as vice president, agriculture with Roc Partners. Prior to Roc, he was associate director for PwC working in the food and agribusiness advisory team, and was senior policy manager – cropping & business, economics and trade, at New South Wales Farmers Association. 

Ben Pickles, manager – Pickles comes to New Agriculture from Kilcoy Global Foods, a food company with operations in Australia, China, and the U.S., where he was finance business partner – operations and investments. Prior to Kilcoy, Pickles held various similar roles with some of Australia’s largest land and water holders including Hassad Australia and MSF Sugar. 

Jamie Lord, manager, investments – Lord joined New Forests in 2013 after nearly 20 years in agricultural investment. Over the course of his tenure with New Forests, Lord has been managing the operations and growth of New Forests’ existing portfolio of agricultural assets and has been responsible for divesting properties from forestry to ag markets – including the successful Lawson Grains transaction mentioned above. 

“Australia and New Zealand’s agriculture industries are significant contributors to GDP, employ thousands of people, and are a vital part of our food supply, making the sustainable management of these landscapes more important than ever,” commented King, who will report directly to Mark Rogers. “I’m delighted to lead a strong, experienced team and look forward to building the New Agriculture business.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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