By Gerelyn Terzo, Global AgInvesting Media
Stafford Capital Partners has reached a major milestone with its timberland fund, achieving oversubscribed status. The U.K.-based investment and advisory firm has announced the close of its flagship Stafford International Timberland Fund X after amassing $1.04 billion, surpassing its USD 1 billion target. As one of the biggest timber funds on the planet, Fund X is the firm’s largest dedicated secondaries timberland fund and reflects its commitment to sustainable timberland investing.
The fund’s total capital raised surpasses $1.1 billion when including co-investment, demonstrating robust institutional interest. In a display of confidence, 72 percent of investors from Stafford’s previous fund, SIT IX, reinvested in Fund X. The investor lineup is comprised of over a dozen institutional investors, primarily pension schemes, an insurance company and an investment trust across jurisdictions, including the U.K., Germany, Asia and North America.
Stafford Capital’s Fund X has so far earmarked $330 million-plus for five investments representing over two-dozen sustainably managed timberland assets across 1 million hectares (2.4 million acres). These investments bolster Stafford’s total timberland portfolio, which is estimated to have sequestered approximately 16 million tons of CO2e between 2023 and 2024. Additionally, these investments reflect roughly one-third of deployed capital in SIT X. Stafford Capital’s investment pipeline is growing, including a pending $140 million deal, as a result of which the firm expects its capital invested tally to rise to USD 470 million.
According to Reuters data, Stafford is ranked among the biggest timber funds on a global scale alongside industry peers like The Reforestation Fund at $1 billion, Brookfield Timberlands Fund V at $1 billion, Brookfield Global Timber Fund I at $1.2 billion and BTG Pactual Brazil Timberland Fund II at $1.24 billion.
Stafford’s success with Fund X underscores the increasing recognition of timberland as a key component of natural capital investment. Investors are drawn to the asset class’s potential for stable, long-term returns and its contribution to climate change mitigation. According to Agri Investor data, capital raised by timberland funds grew nearly threefold in the five years leading up to 2024.
Stafford Capital Partners CEO Angus Whiteley said, “Timberland is the bedrock of the emerging Natural Capital asset class. As a stable, yielding real asset it delivers returns to investors whilst positively addressing the long-term climate risk which is present in all asset classes. Stafford’s approach to accessing the asset class through secondaries is compelling, accessing assets that otherwise do not come to market and delivering a portfolio that is well diversified by geography, species and age class. The close of SIT X above its target of $1 billion shows how institutions have recognized this. We are very grateful for their support.”
Stafford Capital Partners Co-Managing Partner Stephen Addicott commented, “SIT X has been a really successful fund raising for Stafford. Over the course of this fundraising period, we have witnessed the growing consolidation of the asset class as a strategic investment and climate solution for institutional investors. The scale of the fund, combined with our experience in complex secondary transactions allows us to offer investors access to well-established, high-quality timberland portfolios while maintaining attractive risk-adjusted returns.”
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